PRObLCTION
DEVELOPMENT
OPERATIONSJ
I
Source: Depa_ of Ent'.7";'s 1991
Figure 3.1 . The Quality Spiral
48
If company's were to progress Juran proposed three basic steps:
structured annual improvements;
massive training programmes; and
upper management leadership.
In his view, less than 20 per cent of qualitY problems are due to workers, with the
remainder caused by management. Just as all managers need some training in
finance, all should be trained in qualitY to enable them to manage and participate
in qualitY improvement projects [Oakland 19961.
As [Oakland 19901 stated, Juran like, Deming, believed that companies should
avoid campaigns to motivate the workforce, but instead establish specific plans to
meet these goals. Juran favoured the concept of quality circles as they improve.
communication between management and employees. He also recommended
Statistical Process Control (SPC), and he did not believe that "quality is free", Juran
was not in favour of single sourcing for critical purchases and he believed that
training for purchasing managers should include techniques for rating vendors.
Above all Juran advocated that the project approach is important. When it comes
to qualitY there is not such a thing as improvement in general.
Like Deming, Juran proposed 10 steps to qualitY improvement [Oakland 19901:
1. build awareness of the need and opportunitY for improvement;
2. bet goals for improvement;
3. organise to reach the goals;
4. provide training;
5. carry out projects to solve problems;
6. report progress;
7. give recognition;
8. communicate results;
49
9. keep score; and
10. maintain momentum by making annual improvement part of the regular
systems and processes of the company.
Juran is a great advocate for recommending teamwork and the instigation of
Quality Councils and the like. However, he does not recommend campaigns "to
do perfect work". He advised a vendor rating but states that companies should
help the supplier improve thus taking TQM beyond the boundaries of the company.
3.5 SHIGEO SHINGO
Shigeo Shingo's approach to Quality emphasised production rather than
management. His motto was ''Those who are not dissatisfied will never make any
progress". He believed in achieving careful thought, pursuit of goals, planning and
implementation of solutions".
Shingo was the inventor of the singleminute exchange of die (SMED) system in
which setup times are reduced from hours to minutes and the pokayoke
(mistake proofing) system [Oakland 1990]. He was a key developer of the Toyota
Production System in which no defects or errors are produced. To achieve this
two things are required: "pokayoke" and source inspections [Oakland 1990]:
1. pokayoke . here defects are examined, the production system stopped
and immediate feedback given so that the root causes of the problems
may be identified and prevented from occurring again; and
2. with regard to Source Inspections errors are looked at before they
become defects and the system is either stopped for correction or the
error condition automatically adjusted to prevent it from becoming a
. defect.
Zero quality control systems may be .implemented combining both source
inspections with 100 per cent inspections and providing immediate feedback and
action.
50
A zero quality control system, according to Shingo, is based on the following
basic ideas:
a. use source inspection;
b. use 100 per cent inspections rather than sampling inspections;
c. minimise the time it takes to carry out corrective action when abnormalities
appear; and
d. set up pokayoke devices, human workers are not infallible!
Companies such as Toyota which have implemented these systems have virtually
eliminated the need for acceptance sampling methods.
By recommending the use of poka-yoke and source inspection systems, as
advocated by Shingo, it has enabled companies such as Toyota to eliminate the
need for acceptance sampling methods [Oakland 1990).
3.6 PHILlP B CROSBY
Crosby is best known for the concept of "zero defects" and "Do it right first time"
which he developed in the early 1960's whilst in charge of quality for various
missile projects, and later a Quality Director of lIT [Oakland 1990).
Crosby's definition of quality is "conformance to requirements" which he says can
only be measured by the cost of non-conformance. He prefers people to talk of
the existence of only one standard zero defects. Crosby sums up quality
management in one word, prevention, which should replace the conventional view
that quality is achieved through inspection, testing and Checking. There is no
place in his philosophy for statistically acceptable levels of quality, for this leads to
the belief that errors are inevitable and are planned for.
51
In his book "Quality is Free" [Crosby 1982), a number of quality building tools are
identified including his 14 step programme for Quality Improvement, the Quality
Management Maturity Grid enabling a company to measure its present quality
system and company position, the Make Certain Programme for defect prevention
in nonmanufacturing and Management Style Evaluation for selfexamination by
managers of the effects of their personnel qualities on product quality.
Like Deming, Crosby has 14 Points, or rather Steps, to Quality Improvement.
He also has identified Four Absolutes of Quality Management. These being:
1. quality is defined as conformance to requirements, not as "goodness" nor
"elegance";
2. the system for causing quality is prevention, not appraisal;
3. the performance standard must be Zero defects, not "that's close enough";
and
4. the measurement of quality is the Price of Nonconformance, not indices.
In Quality is Free he adds a Fifth Absolute:
5. there is no such thing as a quality problem.
The Four Absolutes of Quality Management are the basis of the Quality
Improvement Process as seen by Crosby. The 14 Steps of the Process are a
practical, commonsense Program to implement quality improvement. The Steps
are:
1. establish Management Commitment;
2. form the Quality Improvement Team from representatives from each
department;
3. establish Quality Measurements throughout the company;
52
4. evaluate the Cost of Quality;
5. establish Quality Awareness by employees;
6. instigate Corrective Action;
7. establish an Adhoc Committee for the Zero Defects Program;
8. supervisor/employee training;
9. hold a Zero defects Day to establish the new attitude;
10. employee Goal Setting should take place, usually on a 30, 60, 90day
basis;
11. error cause removal should be set up to follow the collection of problems;
12. establish recognition of those who meet goals or perform outstandingly by
(nonfinanciaD award programs;
13. quality councils composed of quality professionals and team chairpersons
should meet regularly;
14. do it all over again.
Like Deming and Juran, Crosby has suggested, steps to quality improvement, 14
in total and is strong on the responsibility of management for quality. However, he
totally rejects statistically acceptable levels of quality as he feels this leads to the
belief that errors are unavoidable and are thus planned for.
3.7 OR ARMAND V FEIGENBAUM
Feigenbaum is the originator of Total Quality Contro\. He stressed that "quality"
does not mean "besf' but "best for the customer use and selling price" [OTI1981].
The word "control" in quality control represents a management tool with four
steps:
setting quality standards;
53
appraising confonnance to these standards;
acting when standards are exceeded; and
planning for improvements in the standards.
Feigenbaum argued that statistical methods are used in an overall qualitycontrol
programme whenever and wherever they may be useful. However, such methods
are only part of the overall administrative quality control pattem, they are not the
pattem itself. The statistical point of view, however, is seen as having a profound
effect upon Modem Quality Control at the concept level. Particularly, there is the
recognition that variation in product quality must be constantly studied within
batches of product, on processing equipment,between different lots of the same
article, on critical quality characteristics.
Feigenbaum saw Quality Control as a means of stimulating and building up
operator responsibility and interest in quality. T,he need for "quality mindedness"
throughout all levels is emphasised, asis the need to "sell" the programme to the
entire plant organisation and the need for the complete support of top
management with management recognising that it is not a temporary quality
costreduction activity. The programme, as Feigenbaum argued, must be allowed
to develop gradually within a given plant or company.
On a final note Feigenbaum stated that "in effect quality and its costs are managed
and engineered and motivated throughout the organisation with the same
thoroughness and depth with which successful products and services are
themselves managed and engineered and produced and sold and serviced."
These type of totalqualitycontrol programmes are highly costeffective because
of their results in improved levels of customer satisfaction, reduced operating
losses and field service costs, and improved utilisation of resources.
3.8 OR KAORU ISHIKAWA
Or Kaoru Ishikawa is best known for his Ishikawa or fishbone diagram. This cause
and effect analYSis was seen as a useful way of mapping the inputs which affect
quality. The effect or incident being investigated is shown at the end of a
horizontal arrow. Potential causes are then shown as labelled arrowS entering the
main cause arrow. Each arrow may have other arrows entering it as the principal
54
factors or causes are reduced to their subcauses, and subsubcauses by
brainstorming. An example of a fishbone diagram is shown in Figure 3.2.
Procedures
Equipment
and plant
Materials
,I
___ -r-_..l-____ -r-__ -' _______ Effect
Information
People
Source: Oak/and 1990
Figure 3.2 . The Cause & Effect, Ishikawa or Fishbone Diagram
Turning to organisational, rather than technical contributions to quality; Ishikawa is
associated with the Company Wide Quality Control movement that started in Japan
in the years 19551960. Under this, quality control in Japan was characterised by
company.wide participation from top management to the lower ranking
employees. Furthermore, Ishikawa advocated the use of Quality Control audits
both internally as well as extemally and was quoted as saying:
''The results of these companywide Quality Control activities are remarkable, not
only in ensuring. the Quality of industrial products but also in their great
contribution to the company's overall business."
55
Ishikawa saw the Company Wide Quality Control movement as implying that quality
does not only mean the quality of the product, but also of after sales service,
quality of management, the company itself and the human being!
3.9 OR GENICHI TAGUCHI
Genichi Taguchi was a noted Japanese engineering specialist who advanced
"quality engineering" as a technology to simultaneously reduce costs and improve
quality [Oakland 1990).
Taguchi's methodology is concemed with the routine optimisation of the product
and process prior to manufacture rather than emphasising the achievement of
quality through inspection. Instead concepts of quality and reliability are pushed
back to the design stage. The method provides an efficient technique to design
product tests prior to entering the manufacturing phase. However, it can also be
used as a trouble shooting methodology to sort out pressing manufacturing
problems.
Taguchi defines the quality of a product as "the (minimum) loss imparted by the
product to SOCiety from the time the product is shipped". This loss includes not
only the loss to the company through costs of rework or scrap, maintenance
costs downtime due to equipment failure and warranty claims, but also costs to
the customer through poor product performance and reliability, leading to further
losses to the manufacturer as his market share falls. Taguchi associates a simple
quadratic loss function with deviations from this target. Third loss function shows
that a reduction in variability about the target leads to a decrease in loss and a
subsequent increase in quality. With this conception a loss will occur even when
the product is within the tolerance allowed, but is minimal when the product is on
target.
The Taguchi methodology may be applied as offline quality control in the design
state or,less commonly, as online quality control during production. In the belief
that if quality is designed into a product, on line quality control become much less
important, emphasis is concentrated on offline quality control.
56
Taguchi breaks down offline quality control into three stages:
system design;
parameter design; and
tolerance design
which can be described as follow:
3.9.1 System Design
This is the application of scientific, engineering and technical knowledge to
produce a basic functional prototype design. This requires a fundamental
understanding of the needs of the customer and the production environment.
3.9.2 Parameter Design
This includes the identification of the setting of product or process parameters
that reduce the sensitivity of the designs to sources of variation. This requires a
study of the whole process system design to achieve the most robust operational
settings, in terms of tolerance to ranges of the input variables. This is similar to
the experiments needed to identify the plant varieties which can tolerate variations
in weather conditions, soil and handling.
3.9.3 Tolerance Design
This is the determination of tolerances around the nominal settings identified by
parameter design. This requires a tradeoff between the customer's loss due to
performance variation and the increase in production or operational costs.
Taguchi also pointed out that a statistically planned experiment should be used to
identify the settings of product and process parameters that will reduce variation
in performance. He classifies the variables that affect the performance into two
categories: design parameters and sources of "noise". The sources of noise are
all the variables that cause the performance characteristics to deviate from the
target values. The key noise factors are those that represent the major sources
of variability and these should be identified and included in the experiments to
design the parameters.
57
Statistically planned experiments may be used to identify:
. the design parameters which have a large influence on the product or
performance characteristic;
the design parameters which have no influence on the performance
characteristics;
the settings of design parameters at which the effect of sources of noise
on the performance characteristic is minimal; and
the settings of design parameters that will reduce costs without adversely
affecting quality.
The use of "design of experiments" to improve industrial products and processes
is not new: Tippett used these in the textile industry more than 50 years ago
[Oakland 1990]. However, Taguchi has expanded the scope of these techniques
to off line quality control.
3.10 CLAUS MOLLER
Moller with his trade mark, the "Time Manager" [DT11991] was concerned with a
''Time Management System" to help avoid situations that lead to stress, tension
and failure. As part of this system, time needs to be reserved for delegation,
planning and completing tasks, whatever are the competing pressures.
3.10.1 Moller's Message
Recently, Claus Moller has been tuming his attention to Quality in the conventional
sense [DTI 1991]. However, his earlier work, is wider in that it represents an
approach to life for the individual that aims to bring fulfilment and success through
the better organisation of time and tasks at home as well as at work.
Claus Moller's message is well packaged into theJime Manager loose leaf system
and TMI's courses. His TenPoint Training Philosophy is:
1. training should bring about change;
2. training is a process;
58
3. training is an integral part of the company's strategy;
4. training requires Management commitment;
5. training must be inspirational;
6. training is for everyone in the company;
7. training should be easily understood;
8. training should include tools and written material;
9. training should be geared to the target group; and
10. training should be holistic.
Mollers work is now concemed with Quality, starting with Personal Quality, and
going on to other quality concepts. Product quality is often judged by the
customer in terms of the people representing the product, and there is a need for
mutual respect within the company. Underlying this is a belief that personal and
organisational growth and development are inseparably linked.
3.11 A COMPARISON OF THE GURU'S
The methods advocated by the Guru's such as Deming, Crosby, Shingo and the
like in this chapter, should not be read and applied in isolation, but be an integral
part of Total Quality Management. Table 3.1 compares directly the various
approaches of each of the guru's. The differences and similarities have been
classified under eight different factors. The factors take from the requirements
necessary for implementation of TQM as seen in Figure 1.3, Chapter One, Section
1.2.
59
0'\
o
Table 3.1 A comparison of the TQM elements shown by each of the Guru's
TQM Elements Deming Juran Shingo Crosby
A
Understanding through education and
t/ t/ t/ t/
awareness programmes, quality
principles
B
Commitment, policy & planning
t/ t/ X t/
C
Measurement costs
t/ X t/ t/
D
Purchasing and goods received
X t/ X t/
E
Quality Systems, design,
t/ t/ t/ t/
implementation and review
F
Capability and control
t/ t/ X X
G
Teamwori<, involvement, problem
solving
t/ t/ t/ t/
H
Training and education
t/ t/ X t/
Feigenbaum Ishikawa Taguchi Moller
t/ t/ t/ t/
t/ t/ t/ t/
t/ X t/ X
t/ t/ t/ t/
t/ X X X
t/ t/ t/ X
X X X t/
X X X t/
Table 3.1 shows that Deming was clearly in favour of an education and awareness
programme as indeed did the other Guru's. He also advocated commitment from
the top, ie Senior Management as they were responsible for the majority of the
quality problems and advocated steps for improvement again as did Juran and
Crosby and the use of statistical methods and techniques. However, he failed to
consider the inspection of goods inwards and outwards as shown in Table 3.1.
letter D. This was in total contrast to Crosby and Juran who advocated the use of
formal surveys and that the supplier is an extension to the business and that help
should be given to them to improve.
Shingo argued that zero quality control is the ideal scenario as no defects or
errors are produced. This compliments the work of Crosby as he identified four
absolutes of quality management one of which was the performance standard of
zero defects. Shingo has total belief in the concept of breaking components,
processes and te like into their smallest elements and unlike the other Guru's he
has concentrated his work in this area and ignored the need for commitment,
measures and costs, vendors, capability and control commonly known as SPC and
the requirement for training.
IShikawa was another that failed to consider teamwork and training amongst other
requirements of TQM. However, he did consider and argued that the concept of
cause and effect looked at each element in tum and concluded what the effect of
any action could have on its outcome and the severity of that outcome. This
compliments the work of both Crosby and Shingo with Crosby noting that error
cause removal should be set up to follow the collection of problems (A F as
shown in Table 3.1) and Shingo with his pokilyoke and in source inspections.
3.12 SUMMARY
The importance of the Guru's work is that each of them have recommended
different concepts in the steps to the Implementation of TQM some of which
contrasts and compliments with each other. However, what it does highlight is
that for companies considering embarking on the route of TQM the steps of which
is shown in Figure 1.3 and used as the basis for the factors to compare and
contrast,the Guru's cannot be used in isolation. All should be applied as much or
as little as is necessary as they are all essential elements of TQM.
61
62
Chapter 4
The Development and use of ISO 9000 Standards
4.1 INTRODUCTION
In Chapter 2, Section 2.3 there was evidence [CIRIA 1996) that within industry and
more specifically the construction industry there is the potential to obtain
significant real benefits through obtaining registration with a third party such as
British Standards Institution (BSI) to ISO 9000. However, there was also evidence,
in Chapter 2, that whilst the ISO 9000 series of standards, has made a valuable
contribution to improving the quality of construction company's perfonnnance
although the benefits have not been as great as expected. Criticisms that have
been associated with ISO 9000 tend to focus on bureaucracy, administration cost,
loss of innovative opportunity and limitation to confonnnity rather than improvement
[Bethe1l19931. Chapters 1,2 and 3 also highlighted that to successfully
implement TQM there are other requirements than the implementation of a
documented management system based on the framework of ISO 9000, such as
the application of tools and techniques as advocated by the Quality Guru's and
other exponents. This is further evidenced by the Business Excellence Model,
Chapter 2, Rgure 2.8, whereby "processes" is represented by a figure of 14 per
cent out of a possible 200. This Self Assessment Model being the framework to
the pursuit of excellence.
It was concluded that the ISO 9000 series of standards needs reviewing to
ascertain:
why they were instigated;
what was their purpose;
whether there is any correlation between the ISO 9000 standard and the
messages of the quality exponents and Guru's.
how they have aided industry and in particular the construction industry to
improve performance; and
how it will continue to meet those industry n e e s ~
63
4.2 THE HISTORY OF THE ISO 9000 STANDARD REQUIREMENTS
The standards most frequently encountered in construction work in the United
Kingdom may be described under two headings, "general purpose standards" and
"nuclear standards". Both general purpose and nuclear standards specify systems
which will maintain and assure quality. The difference is that whereas the first
category is oriented to the requirements of the market place, the second is aimed
more at satisfying the statutory requirements imposed by regulatory authorities
particularly in respect of safety. This results in a difference of emphasis, although
the aspects covered and the systems specified are not dissimilar.
The focus of this research is based on the general purpose standards as these
are foundation of the development of TQM in the workplace. Most standards
within the general purpose category owe their origin to the AQAP series
established for defence procurement purposes by the North Atlantic Treaty
Organisation in 1968 [Ashford 19891. The AQAP series was adopted by the
British Ministry of Defence in 1970. A report by Sir Frederick Warner in 1977, on
"standards and specifications in the engineering industries", rationalized what had
become a proliferation of standards, issued by various purchasing and third party
organisations into BS 5750; 1979 and formed the centrepiece of a series of
standards issued by the British Standards Institution on a number of quality related
subjects including metrology, reliability, measurement and calibration. Its
provision were followed closely by a number of equivalent European national
standards and it provided a foundation for the international standards for quality
systems issued in 1987 by the Intemational Organisation for Standardization OSO)
The ISO standards for quality systems are known as the ISO 9000 series. This
consists of three standards designed for contractual use, two guidance
documents and a vocabulary of terms. The series was adopted by the European
Committee for Standardization (CEN) and it now forms part of the national
standards systems of the members of CEN, which includes the sixteen member
states of the European Union and the European Free Trade Area. It has also been
incorporated into the American ANSI/ASQC series of standards. Of the major
western industrial nations, only Canada has retained its own national quality
standards. In the United Kingdom the British Standards Institution reproduced the
ISO 9000 series of standards as the 1987 version of BS 5750. Table 4.1
illustrates the equivalent standards in each of the member states. It is interesting
to note the strong correlation between what the Quality Guru's have been advising
industry throughout the world for many years on how it should manage quality and
the International Standard developed by ISO. The over bearing message from
64
both the "Guru's" and the "Standard" is that there are no quick fixes to quality,
companies need full commitment, leadership and support from top management
coupled with extensive training and participation of all employees. The "Guru's"
preach the same messages in their 10 and 14 step programme as the ISO
Standard. These advocate the use of quality control audits both intemally and
extemally, giving recognition, maintain momentum by making annual
improvements as part of the regular systems and processes of the company,
instigation of corrective actions and the use of quality control and SPC. These are
all clauses of the standard in their own right.
BS 5750; 1987 follows a philosophy generally similar to that of the 1979 issue,
although there have been changes in detail and wording. Many of these arose
from the elimination of military temninology which had made the standard difficult
to interpret in a commercial environment. It is supported by BS 4778; 1987
Quality vocabulary, Part 1 of which is identical with ISO 8402; 1980 Quality
vocabulary and provides definition of 22 temns in common use in the quality
context together with their equivalents in French & Russian.
BS 5750 was issued in four parts:
Part 0 Principal concepts and applications
Section 0.1 Guide to selection and use
Section 0.2 Guide to quality management and quality system
elements.
Part 1 Specification for design/development, production installation and
servicing
Part 2 Specification for production and installation
Part 3 Specification for final inspection & test.
65
Table 4.1: Quality system standards
Intemal Quality Management
Standards Body Quality Management and Quality Quality Management and Quality
Assurance Standards System Elements guidelines
Guidelines for selection and Use
IntemationallSO ISO 9000 ISO 9004
European CEN EN 29000 EN 29004
United Kingdom BSI BS 5750; Part 0 BS 5750; Part 0
Section 0.1 Section 0.2
USA ANSI/ASQC Q90 Q94
Genmany DIN ISO 9000 ISO 9004
France NF X50121 X50122
Extemal Quality Assurance
Standards Body Quality Systems. Model Quality Systems Quality Systems Model
for Quality Assurance in Model for Quality for Quality Assurance in
Design/Development, Assurance in Final Inspection and
Production, Installation Production and Test
and Servicing Installation
IntemationallSO ISO 9001 ISO 9002 ISO 9003
European CEN EN 29001 EN 29002 EN 29003
United Kingdom BS 5750; Part 1 BS 5750; Part 2 BS 5750; Part 2
BSI
USA ANSI/ASQC
Q Q92 Q93
Genmany DIN ISO 9001 ISO 9002 ISO 9003
France NF X50131 X50132 X50133
Source: Ashfrm! 1989
4.2.1 Guidance on the Various Parts
part 0 . Is a guidance document. Section 01 outlines the principal concepts and
offers guidelines for the selection and use of the appropriate part of the standard
for different applications. Section 02 describes the basic elements of a quality .
system and advises on their development and implementation. Section 0.1 gives
guidance on obtaining "extemal" assurance from suppliers or contactors, whereas
section 0.2 gives "internal" advice on how to establish one's own system.
66
Part 1 . Is for use when detailed specifications are not available and the .
purchaser's requirements have yet to be established or can only be stated in
terms of the performance to be achieved. The 3upplier is expected to develop the
design and to control quality throughout all stages of the work. Part 1 would thus
be appropriate to Project Management contracts in which one contractor
undertakes total responsibility for a project including design, construction and
commissioning. They would also be applicable to contracts for the shop detailing,
supply and erection of structural steel or for the design, fabrication and installation
of a hearing and ventilating system.
Part 2 . Applies when the requirements of the purchaser can be stated in terms of
an established design and specification but where conformances to these
requirements can be adequately established only be inspections and test
performed during manufacture or construction such specifications could thus be
applied to typical construction contracts let against drawings and technical
specifications supplied by or on behalf of the purchaser. Other applications could
include the supply of reinforcing steel or precast concrete units.
part 3 . Is applicable to products of established design where conformance with
specification can be established by inspection or testing in their finished state.
Examples of such products encountered in the construction industry include
aggregates, window glass or sanitary ware.
These quality system standards are designed for a number of uses. An
organisation may, for example, decide to set up a quality system in accordance
with a chosen standard in order to safeguard the quality of its work and to satisfy
its own management's need for assurance that its customers are receiving the
products or services which they have specified. Guidance on establishing such a
system may be obtained from SS 5750 Part 0.2. However, the organisation may
well find that an important part of its system will be the procedures to be followed
to gain assurance that its suppliers are not jeopardizing its efforts by delivering
substandard materials or components. If so Part 0.1 will advise on the selection
of the appropriate system model (part 1,2, & 3) against which potential supplier's
systems can be assessed or audited before a contract is entered into. The
organisation may then go further and decide to make compliance with the
selected quality system standard by its suppliers a contractual requirement.
Having implemented all these activities, the intention is that the organisation will
not only be more certain of its own and its suppliers' ability to perform, it will also
be able in tum to provide similar assurance to 'its customers.
67
4.3 EVOLVING QUALITY STANDARDS
A revised version of the BS 5750 quality standard was published in August 1994.
This was the first revision since 1987, when it was adopted by the ISO as ISO 9000.
Compared with the 1987 versions, there are over 170 changes to BS 5750 parts 1
& 2. Most, however, are minor: paragraph renumbering, and clarifying or placing
greater emphasis on existing text. However, some changes are important and need
to be recognised as such.
Having established the same clause numbering, the key changes to BS 5750 Parts
1 and 2 were as follows:
the use of customer "replaced purchaser", and product was defined in terms
of the four generic categories of hardware, software, processed material and
service. This served to emphasise that quality system requirements were
essentially the same for all products;
management responsibility required top management to be clearly involved
with quality policy and objectives. It moved the focus of resources from
verification to providing training and skills at all levels;
a quality manual was required that included or referred to the documented
procedures. Every clause referred to documented procedures, but it was
emphasised that it is only necessary to provide sufficient quality system
documentation to match the skills and training of the company's personnel;
all forms of contract had to be reviewed, and the procedure for
communicating changes to contracts through the company had to be
described;
design control separated the need to review and verify designs, and
introduced the new requirement to validate designs;
purchasing required the evaluation of subcontractors, as well as their
selection and the company had to state the methods used to verify products
at a subcontractors premises;
controlled conditions for processes included maintenance of equipment; and
corrective action was separated into shortterm and longterm actions
especially in the area of data analysis.
BSI Standards has also taken the opportunity of this revision to change the
numbering of the standards in order to reflect their primary source OSO) and indicate
those areas where they have been formally adopted ie the UK and Europe. The new
68
number is now BS EN ISO 9000.
However, to ensure a degree of continuity, the new standards have the message
"formerly BS 5750 (part I, etc)" printed on the cover.
Compared to the above changes, the changes to BS 5750 Part 3 were major. The
scope of the standard addressed much more than final inspection and test. It
includes clauses on contract review, control of customer supplied product,
corrective action, and intemal quality audits.
4.3.1 Why have the standards changed?
It is a requirement of the ISO that all of its standards are reviewed and either revised
or revalidated every 5 years. The 1994 version of the ISO 9000 series is a result of
such a review.
However, this revision is part of a broader programme, the ''Vision 2000", [BSI
19931. It is part of a long term strategy adopted by the intemational standards
committee responsible for the ISO 9000 series.
Vision 2000 calls for a programme that addresses the following elements.
the need to correct inconsistencies and errors that have emerged in the
worldwide usage of the standard;
the need to improve the wording of the standard so that it is more easily
applicable to the increasingly wide scale of usage, particularly in the non
manufacturing sectors such as service industries; and
the need to make more significant changes to take account of the move
towards the principles of total quality management.
In order to make these changes manageable, they have been split into two phases:
the 1994 changes (which addressed the first and some aspects of the
second element described above); and
the proposed changes for 1998 (which are addressed below will complete
the programme).
69
4.3.2. The proposed changes for ISO 9000: Year 2000
In 1997 ISO/TC 176 carried out a survey of users and customers of the QMS
Standards. The survey showed that what users and customers of the standard
wanted was [Quality World 1998]:
better compatibility with ISO 14000 (the Environmental Standard);
a common structure for standards setting out requirements and guidance for
QMS's, based on a process model one standard for QMS requirements,
instead of three OSO 9001,2 and 3), with tailoring to omit requirements for
QMS, OSO 9001) should include demonstration of continuous improvement
and prevention of non conformity;
requirements for QMS, OSO 9001) should address effectiveness of the
system but the guidance standard OSO 9004) should address effectiveness
and efficiency of the system;
the guidance standard OSO 9004) should be directed at producing benefits
for all parties with an interest in the success of an organisation, but the
requirements standard should be customer oriented;
the standards should be simpler to use, easier to understand and use clearer
language and terminology;
the QMS standards should be suitable for self evaluation; and
where the previous standards were biased toward manufacturing industry
and generally to the requirements of large organisations, the new standards
mus be suitable for all sizes of organisations, in any industry or economic
sector, supplying both products and services.
In the UK, the first committee drafts of ISO 9001: 2000 (the new ISO 9000) QMS'S
requirements and ISO 9004: 2000 (the new ISO 9004) QMS's guidelines were
issued in August 1998 as draft British Standard. Two significant changes from
previous issues of the standard are clear. These are, a process model approach
and a common clause structure of the two standards. The process model involves
two major cycles which both focus on the central management activity of any type
of organisation. Both cycles share measurement, analysiS and improvement as a
final area, serving as a feedback loop and involves extracting information from
customer responses to the product and/or services provided by the organisation
which are evaluated so that improvements can be made [Quality World 1998 and
British Standards Institute].
70
The common clause structure contains a nine clause structure which groups all
operational activities relating to the actual p r o ~ s s s involved in developing,
producing and delivering a product/service into one clause. All other aspects of an
organisation's activities loop back toward the process management activities with
use of a plan do . check act (which Deming recommended in Chapter 3 in his
steps to improvement) cycle in the internal processes of the QMS [Quality World
1998 and British Standards Institution). The proposed draft is also compatible with
other standards such as ISO 14001.
As stated in Section 4.2.1 the standards are either revised or revalidated every 5
years and section 4.2.2 demonstrates clearly that this process is being carried out
with this revision completing the ''vision 2000". Much work has been carried out to
this revision to the standard and it is causing a great deal of speculation with its
users and customers as the early drafts indicate that the standard will meet the
requirements of its users and customers and that the ISO /lC 176 listened to and
has incorporated results from the survey that they carried out on users and
customers of the QMS standards in 1997.
4.4 WHAT ARE THE IMPLICATIONS FOR COMPANIES?
The significance of the changes in the 1994 version was dependant upon how a
company originally implemented the quality system requirements of the 1987
versions. Thus, highlighting the importance of interpretation and adopting a
common sense approach when using the standards.
Companies found that the changes only served to reinforce what they are already
doing, and confirm their original interpretation of what particular clauses were
required in practice. This was the case where a company had worked to ensure that
its BS 5750 quality system produces real value and maximum benefit for its
business. However, registered companies which only just satisfied the minimum
requirements of the 1987 standards would have found that they did not meet the
new 1994 requirements.
The ISO 9000: Year 2000 update will not necessitate a change in the Organisations
Quality Manual to match the structure of the new standard. The accreditation bodies
will guide organisations to ensure a smooth transfer for already certified
organisations and a transition process model is currently available to help
companies. BSI's current advise is to use their customer services, their website and
indepth training in readiness for changes in the Year 2000.
71
4.5 THE QUALITY SYSTEM
A quality system is the organisational structure, procedures, processes and
resources needed to implement quality management. The organisation's
management should develop, establish and implement a quality system to
accomplish the stated polices and objectives. The system should be structured and
adapted to the organisation's particular type of business and should take into
account the appropriate elements outlined in the ISO 9000 series. It should function
in such a manner as to provide confidence that the system is understood,
implemented, maintained and effective, that the products satisfy customer needs
and expectations: the needs of both society and the environment have been
addressed and finally that emphasis is placed on problem prevention rather than
dependence on detection after occurrence.
The extent of application of a quality system applies to, and interacts with, all
activities pertinent to the quality of a product. It will involve all phases in the life
cycle of a product and processes, from initial identification of market needs to final
satisfaction of requirements, as shown in Fig 4.1.
72
Disposal or recycling
at the end of useful life
After sales
Technical assistance
and servicing
[
Installation and
commissioning
Sales and distribution
Market and
marketing research
T ypicallife-cycle
phases of a product
Packaging and storage
Source: Ashford 1989
Product design
and development
Process planning
and development
Purchasing
Verification
Figure 4.1 . A schematic representation of the typicallifecycle phases of a product
The philosophy of the ISO 9000 series is that in order for a company to be
successful it must offer products or services that:
1) Meet a well defined need, use or purpose;
2) Satisfy Customer's expectations;
3) Comply with applicable standards and specifications;
4) Comply with staMory (and other) requirements of society;
5) Are made available at competitive prices;
6) .. Are provided at a cost which will yield a profit.
73
This is achieved by developing a quality management system which aims "to get it
right first time" as shown in Figure 4.1. Client assurance requires demonstration
of an organisation's capability to control the processes that determine the
acceptability of the product supplied. The requirements of the Standard are aimed
primarily at preventing and detecting any nonconformity during production and
installation. This includes the implementation of a means of preventing its
recurrence. But just how does the standard already described in great detail and
its clauses interrelate to each other and how are other elements which may be
found within an industry process but are not specifically referred to in the
Standard fit into the overall link? In order to describe the various links and
interrelationships a series of diagrammatic representations have been developed,
Figure 4.2 to 4.13.
The shadowed boxes represent the ISO clause numbers, with the balance being
shown as links between the various elements eg corrective action clause 4.14.
74
Cl ..
~ o
ltms4.6
-""
'.1
aASyslon
'.2
SOurcB: HughBS" ltfIIjams 1991
rr<:='" COPMPANY
LEVEl
PROJECT
SPECIFIC
action 4.13
Rgure 4.2 _ Overall diagrammatic representation of BS EN ISO 9002 1994
75
Taking each of the clauses in tum a brief description of the essential features of
the clauses is given in the following section. An extract from Figure 4.2 together
with a description of that element and its relationship to the other clauses is then
examined.
4.5.1 Management (Clause 4.1)
Management must:
define and document its policy for Quality to include its objectives and
commitment to Quality;
ensure that the policy is understood, implemented and maintained at all
levels;
ensure that the responsibility, authority and the interrelation of personnel
who manage, perform and verify work affecting Quality is defined and
documented;
identify resource requirements and provide adequate resources, including
the assignment of trained personnel; and
nominate/appoint a member of its own management to ensure that the
Quality system is established, implemented and maintained; and regularly
review the system to ensure its continuing effectiveness.
It is important to note here that all the Quality Guru's recognized that there was no
short cuts to Qualrty and that improvement required full commitment and support
from the top.
Two-waytlow
Management
4.1
Q S ~
4.2
Sourc.: Huglres" WiJliams 1991
Two-waytlow
Figure 4.3 . Qualrty Assurance
76
One-way ftow
Rgure 4.3 shows that management is directed via the Quality System, which
management establishes and maintains via regular feedback. Control is exercised
via Audit Procedures, which is a twoway process of continual improvement for the
Quality System (as advocated by Joseph Juran in his 10 steps to quality
improvement).
4.5.2 Quality Assurance System (Clause 4.2) .
A quality manual shall be prepared and include/make reference to the
quality system procedures and outline the structure of the documentation
used in the quality system;
The organisation shall establish, document and maintain a quality system;
and
The document must be available to all personnel who have defined roles
and responsibilities within it;
One-waytlow
Two-wayftow
-'
QA """om I
4.2
----------------------------------J a---___ _
4.14 4.4. .
[
] Quality
Source: Hughe$ & WiIHdm$ 1991
Rgure 4.4 . Quality Assurance
Figure 4.4 shows the QA system at its heart with its constituent elements feeding
both to and from it. In a construction organisation the system exists at two levels.
At company level are those processes and procedures which management require
to be common to the whole organisation. At project level are the specific
processes and procedures to operate in the unique circumstances of the project.
The system must firstly be well planned and managed and secondly must produce
documentary evidence of its existence and effective use. The Quality Plan is a
vital element of the system but need only be as detailed as the complexities of
77
each particular project demands. The Quality Manual is in effect a description of
the way an organisation conducts its business.
4.5.3 Contract Review (Clause 4.3)
A procedure must be included at both Tender and Precommencement stages to
review the clients requirements.
QA System
I
4.2
------ --_._---------- -------------------
4.3
Cont. revieWJ
I
Quality Plan
Source: Hughes '" WHiams 1991
Figure 4.5 . Quality Assurance
Figure 4.5 shows that the procedures to be adopted within the review noted above
are defined within the system. Also that the documented results specific to the
project are a necessary element to assist in the compilation of the Quality Plan.
4.5.4 Document Control (Clause 4.5)
Procedures shall be included to ensure that all drawings, specifications and other
quality related documents, including revisions, are properly controlled and
distributed.
78
I
On.wayflow
I
Two-way flow
COPMPANY
Document
LEVEL
--------------
control
---------
4.4
PROJECT
1
SPECIFIC
Source: Hughes & Williams 1991
Figure 4.6 . Quality Assurance
Figure 4.6 illustrates the position of document control. The QA system
establishes the procedures to be used and the Document Control system feeds
those records relevant to the maintenance of the system back to the system to be
available for inspection and audit. These records also assist management in its
task of pursuing the continual improvement of the QA system noted in Clause 4.1.
4.5.5 Purchasing (Clause 4.6)
Procedures shall be established and maintained to ensure that purchased product
conforms to specified requirements.
Subcontractors shall be evaluated and selected on the basis of their ability to
meet subcontract requirements including the quality system and any specific
quality assurance requirements.
Procedures shall also be included for the continual reassessment of boughtin
resources based upon performance.
Procedures must be included to ensure that client supplied services or products,
including information, also comply with the appropriate quality standard. (Clause
4.0)
Also include procedures that enable the standards and sources of products
incorporated within the works to be identified and traced. (Clause 4.8)
79
4.5
purCha::l
I Consultants J
SuI>-
Client
contractors
supplied
~ e m 4 6
I
I
Source: Hughes & Wlliams 1991
Figure 4.7 . Quality Assurance
Figure 4.7 illustrates the nature of the resources to be purchased including those
supplied by the client. The traceability element shown on the main diagram is fed
back to the system vial the quality records and document control.
4.5.6 Process Control (Clause 4.9)
Procedures must be included for:
planning;
subsequent control; and
documentation.
80
I
I
Process
Control
4.9
i
Special
. Design
processes
Standards anc
codes
Workmanship
criteria
.
I
Source: Hughes & Withams 1991
Figure 4.8 . Quality Assurance
Figure 4.8 shows Purchasing, Process Control and Inspection and Testing all
feeding into the project specific Quality Plan. It is therefore within the Quality Plan
that the documented project specific details of control of these elements will be
produced. The excerpt above shows those elements of process control normally
required to be catered for. Written method statements or instructions should be
recorded within the Quality Records.
4.5.7 Inspection and Testing (Clause 4.10)
Procedures must be included for:
verification of compliance with specification. These must be produced at
each of the following stages;
upon receipt;
operation of the process; and
at completion.
81
the routine checking and documentation of measuring and test equipment
(4.11);
the prevention of defective materials or workmanship being finally
incorporated in the works through a system of instructions and records
(Clause 4.12) and the control of nonconforming products (Clause 4.13);
the implementation by management of corrective and preventative action in
the event of actual or potential nonconformities (Clause 4.14);
the use of documented procedures for, performing, verifying and reporting
that the servicing meets the specified requirements; and
the use of statistical techniques in establishing conformance (Clause 4.20).
Statistical
techniques
4.18
Incoming
products
Equipment test
4.10
Source: Hughes & WiHiams 1991
Figure 4.9 . Quality Assurance
Figure 4.9 links Statistical Techniques, Equipment Tests, Inspection and Test
status and Nonconformance control within the area of Inspection and Testing. All
of these elements would form part of the Quality Plan and have been advocated by
Juran(Chapter 3, Section 3.3).
82
4.5.8 Handling and Storage (Clause 4.15)
Procedures must be included for:
receipt of materials;
identification of materials;
inspection of materials;
handling and storage of materials in accordance with the manufacturers'
recommendations to ensure protection from damage or deterioration; and
protection of completed work until handover.
t
Two-way now
QASystem
4.2
----. ________ . ________ __ .0 ______________ _________________________________ ---.. ---.
"------------J Quality Plan ).r-----I
i
Sourc.: Hugh & Williams 1991
Figure 4.10 . Quality Assurance
Figure 4.10 indicates that a number of the above procedures will be common to
all projects but that particular circumstances may well require project specific
procedures which would then be identified and written down within the Quality
Plan.
4.5.9 Quality Records (Clause 4.16)
Records must be maintained, safely stored and be accessible for verification that
work has been carried out in conformance with the quality system.
83
I I
I
\
( -1
-"l
( )
...,.."
--
r--
r--j ( .. _)
"""-
"""'''-1
1(--
iWnIH \ J
H
)
-"'
Sourcs: Hug/7" & Williams 1991
Figure 4.11 . Quality Assurance
Figure 4.11 illustrates the wide variety of sources from which the Quality Records
are required to be drawn. Any meaningful system must aim to make full use of
these records as they form an important element of the feedback necessary for
management's role in the continuous improvement and upgrading of the Quality
System.
4.5.10 Audit (Clause 4.17)
A planning sequence of intemal audits must be defined to ensure the effectiveness
of the quality system a method advocated by the Guru Ishikawa [Oak land 1990]
both for extemal as well as intemal use. The results of the audits should be
documented and the records should indicate deficiencies, corrective actions and
its timing and the person responsible for such action.
84
Enable Define
~ ~ ' COPMPANY
........ TI1iiIII ...
lEVEL
4.17
r
----t\..wi;.. PROJECT
SPECIFIC
Source: Hupss & Wlliams 1991
Figure 4.12 . Quality Assurance
Figure 4.12 shows audit as the means of management control via the QA system
and in particular the QualitY Records feed back via document control to that
system. It must be remembered that the audit is concemed with the operation of
the system; the responsibilitY for ensuring that the required quality standards are
attained, through use and improvement of the system, rests with management at
all levels.
4.5.11 Training (Clause 4.18)
Procedures must be included to ensure that:
personnel records are kept and are available to confirm that staff or
operatives requiring particular skills have been trained, tested or otherwise
checked;
provision is made for additional training where a general or specific need is
identified;
provision is made for qualitY awareness training; and
particular attention is given to new personnel,
85
--
{Administer J
Training J
4.17
[Newmn J {e:;g )
Source: Hug/Ies & Williams 1991
Figure 4.13 - Quality Assurance
Figure 4.13 shows management's direct input into the improvement of what is
undoubtedly its most important long term resource. The development of this
resource concems management at all levels of the organisation. Procedures for
training, although primarily operating company wide, can also be project specific if
the needs of a project introduce particular training requirements. Again the
Quality Guru's advocated extensive training and participation of all employees.
In summary there is a strong correlation between what the Quality Guru's have
advocated in Chapter 3 and the ISO Standards described in this Chapter 4. One
will not work effectively and efficiently without the other. The ISO Standard
provides a framework for management systems, procedures and work
instructions. However, it is only part of a Total Quality Management System
whereby managements involve employees in a continuous process of
improvement in all company activities. This systematic approach needs to be
supplemented with principles, tools and techniques for cultural change and
continuous improvement all of which has been advocated by the Guru's as a
means beast suited to process and quality control. Figure 1.1, Chapter I, best
illustrates the correlation between ISO Standards and that of the Guru's and how
the work of both complement each other.
86
4.6 DOES A 'SYSTEM" NEED TO BE REGISTERED BY A THIRD PARTY?
So does a "system" need to be registered by a third party? This is the question
every company needs to consider. In Chapter 2, Section 2.3 the surveys
undertaken by the National Quality Assurance Ltd [Quality World 1997] and Quality
Liaison Group 1995 showed that companies wanted more from their certification
bodies, for example, taking notice of their customer needs. Chapter 2 also.
highlighted that the reputation of ISO 9000 and its certification bodies had been
tamished by companies that believed it to be an expensive and inappropriate
standard, [BendeIl1994]. However, the ISO 9000 standard is a very flexible
document and common sense needs to prevail when developing a system in
compliance with the standard. The standard is a "management tool" and should
be seen as such. How a company develops, writes and implements the system is
up to individual needs. How constraining or stringent the procedures are is again
the individual companies own choice and dependent on how the clauses are
interpreted. This section details the steps that are necessary in order for an
organisation to register with a third party ..
However, there has been much debate as to whether there is a need to register
the "system" once it has been developed and implemented . This may depend on
several factors:
management decisions;
cost;
commitment towards quality within the company; and
customer needs.
If management decision is taken as the first factor and is applied to the Miller
Group, Chapter 5, it can be seen from their Quality Policy that each section of the
Group will:
': ....... develop and implement quality management systems which are appropriate
to its own operation and take account of the intemal and extemal client services it
provides. The Quality Management System shall be developed in accordance with
the requirements of the relevant part of BS 5750/lS0 9000 or nationally/
intemationally recognised sector scheme . where appropriate, third party
accreditation shall be obtained ............. " IThe Miller Group Quality Policy 1996]
This has been endorsed by their Chairman and as such is the Policy of The Miller
Group. The Third Party scheme developed by ISO was designed to reduce and
87
even remove the need for many second party audits (assessment of suppliers or
subcontractors by clients), by providing a list ot companies whose systems had
been assessed and shown to be in compliance with a level of BS EN ISO 9000
commensurate with their business. The bodies that are responsible for
undertaking these audits are collectively known as Certification Bodies and are
themselves assessed by the United Kingdom Accreditation Services (UKAS), and
given accredited status if successful. There are a number of Certification Bodies,
the popular ones being BSI, Yarsleys, Lloyds and Bureau Veritas. The assurance
thus provided to potential customers would mean that they may not have to audit
them as well, which can be expensive both for clients and suppliers as only a small
minority of assessments may lead to actual orders, if the assurance given by the
third party satisfied their needs.
The auditee pays for the programme by employing a Certification Body to audit
them on a regular basis. The auditee if successful in this programme is entered
into the BSI Buyers Guide Of BSI is their certification Body) and is able to use the
achievement of recognition in his marketing effort. The customer may use the
Buyers Guide and thus reduce the number of second party audits. The supplier
may not have to undergo so many audits by his customers as they had previously.
If a company decides to go for third party accreditation, then the process is as
shown in Figure 4.14.
88
Company
Company registration
the goal
!
Contacts BSI QA
!
BSI prepares proposal
!
Company does work on system
!
Agree date with BSI for assessment
!
Auditors recommendation to BSI board
!
Board considers recommendations
!
Board decides No . Company advised reapply reassessment/cease
!
Yes Company receives registration
!
Surveillance by BSI
NB (Assumption made that BSI is the certification body)
Sourc.: BSI Q.A 1996
Figure 4.14 . Process for Third Party Accreditation with BSI
However, there is the cost implication to consider. At current prices, February
1999,the cost of a Third Party Audit by BSI and maintaining registration is as
follows:
NB BSI were chosen as they are considered to be the world leader by
experience and number of companies registered with them.
89
Application Fee
Pre-assessment (optional)
Initial Assessment
480/single site
530
530/man days
NB This is dependant upon a number of factors for example number of
employees.
Maintenance of Certification
Management Fee
Continuing Assessment Fee
450/year
495/audit
(normally 34 /year)
This is normally the draw back for many companies the cost of registering the
system and the surveillance audits. However there does seem to be a definite
move towards registering a Company's system with a Third Party and more than
70,000 companies are registered with BSI in 1998. These figures were obtained
from BSI and show the number of sites that have obtained certification. It must be
noted that some companies may have more than one licensed site, ie Miller Civil
Engineering have three licensed sites Washington, their Head Office in Rugby
and Edinburgh.
The main benefits of obtaining third party certification are that it reduces the
number and extent of quality system assessments by customers and it enables an
independent third party to review, guide and advise on the Quality Management
System in place ensuring that it continually reflects the business needs. The
benefits of implementing such a system and maintaining it will far out weigh the
initial cost and incurring costs in the long term providing that there is commitment
and teamwork from everyone from the top to the bottom of an organisation. As
indicated in Chapter 2, research has shown that ISO 9000 has made a valuable
contribution to improving the quality of a company's performance.
However, it is. also perfectly reasonable to have a documented quality
management system, without obtaining Third Party Certification but the Company,
may then be subject to more Second Party Audits. It also depends on the
demands of the customers dependent upon business needs.
90
4.7 SUMMARY
The chapter has highlighted why the ISO 9000 standards were developed and that
the standards play just a small part in the pursuit and implementation of TQM.
The manufacturing sector major customers are using ISO 9000 as a foundation
and have also developed an additional customer specific standard namely
QS 9000, refer to Chapter 2. In the construction sector clients are relying on
their suppliers to "self check" their work (Chapter 2 Section 2.3 refers) which by
instigating ISO standards will allow them to do so in a systematic manner.
However, by registering the ISO standard by a third party it gives the customers a
third party independent verification by an organisation such as BSI which will
provide them with extra confidence in the application of ISO standards within the
organisation, at a very small outlay and maintenance cost. It is also a standard
that is regularly reviewed and updated to reflect changes across all industries.
91
92
Chapter 5
Total Quality Management in Practice
5.1 INTRODUCTION
One of the key emerging themes in Chapter 2 was that price was no longer the
determining factor. Customers are now tuming their attention to the Quality of the
product or service using Management Systems, accredited by third parties, as an
assurance of that product or service meeting their or their customer
requirements. However, in order for Management Systems to be successful in
companies, total commitment of everyone including the client, staff, supervisors,
operatives and the like is required with a clear understanding of who the
customers and suppliers are.
There was also evidence that the supplier customer chain was becoming
increasingly important with a strong emphasis of each part of the chain
interrogating each other to ensure that they got the product or service they
required at the right time and the right place. However, in order to successfully
implement Management System the literary review highlighted that it requires
clear leadership and a complete culture change coupled with a system that is
flexible enough to meet unknown risks and avoids bureaucracy. It entails
providing the correct education and ensuring personnel have the right tools to do
their job and encouraging them to take responsibility for their own job ie, self
checking and to raise the appropriate corrective actions when necessary.
However, as shown in the survey's within the literary review there has been
criticism with the implementation of Management Systems more particularly the
ISO Standard upon which the majority of these systems are based, with the public,
perceiving the BSI Kitemark on a product as guarantee for high Quality. The
standard has been branded expensive and is full of unnecessary clauses and
jargon. It was therefore concluded that the key aspects highlighted in Chapters 2,
3 and 4 and summarised in this Chapter would form the basis of the Questionnaire
in which to gather tangible data on the implementation of TQM in three chosen
companies. The first company was the Miller Group, for which Miller Civil
Engineering was the Division on which the research was principally based. They
are a medium sized Civil Engineering contractor primarily working in the UK with a
turnover of 81 million. The division is based in Rugby with regional offices
throughout the UK. They operate in all sectors of Civil Engineering including
water, tunnelling, bridge and road building. They currently have contracts
93
between 500,000 to over 107 million. Each project is different, with different
teams in different locations.
The second chosen company was British Telecom plc, a well known international
company selling a service of telecommunications, again with diverse teams
operating in varied locations. The turnover is circa 16 billion. However, the
research was based in their London Offices which has a turnover of circa 10
billion.
The third company was GKN Sinter Metals, a powder metallurgy company in the
manufacturing sector, who are a first tier supplier to all the major automotive
companies including, Ford, Rover, Volkswagen, Nissan and Honda. Their turnover
is 25 million, working in the same location, with the same team, employing the
same processes.
In order to validate this research it was necessary to connect the empirical data
produced by research to the study's initial research questions and ultimately to its
conclusions [Yin 19891. Three criteria were considered crucial in identifying the
companies. The first was that concepts of Total quality had to be studied within a
range of different industries in order that best practice could be established. The
second was that the companies had implemented ISO Standards and embarked
on TQM concepts and principles. Lastly, the companies had to be operating in
different conditions. The companies were selected on the basis of their
accessibility and for meeting the criteria. A letter was sent directly to a named
individual for quality outlining the scope of the research and asking if the
organisation was willing to participate in the research, a meeting could be
arranged, with other representatives from the company if necessary, to discuss
the matter further. The organisations were positive and a visit was undertaken to
discuss the research. All were willing to contribute to the research. This formed
the initial interview. The identification of the organisations had been carried out by
means of self selection.
The remaining Sections of this Chapter defines me data collection, the
methodology that was undertaken for this research, the design of the
questionnaire and the analysis of results from the returned questionnaires and
subsequent interviews.
94
5.2 DATA COLLECTION
The research design is the logical sequence that connects the empirical data
produced by research to the study's initial research questions and ultimately to its
conclusions [Yin 19891. One of the principal purposes of the design is to help
avoid the situation in which the collected data does not address the initial research
questions.
The research design should therefore:
make explicit the questions the research should answer;
provide hypothesis/propositions about these questions;
develop the data collection methodology;
discuss the data in relation to the initial research questions and the
hypothesis/propositions [Simister 19941.
The aim of the data collection for this research was to ascertain where each of the
three companies, the Miller Group (Miller Civil Engineering), British Telecom plc
and GKN Sinter Metals, were in terms of leadership, flexibility, commitment,
effectiveness and competitiveness, all key components in the implementation of
TQM as highlighted in Chapters 1 and 2. There are a number of research
methodologies for data collections available. The first, surveys, collects data in a
standardised form from samples of a population and allows the researcher to
carry out statistical inferences on the data [Simister 19941. This statistical
inference, moving from the particular observations of the sample to the wider
generalisations of entire populations, is a major reason why surveys are popular
with researchers [Oppenham 19921. The second form of data collection,
experiments, are undertaken to measure the effects of manipulating one variable
on another variable and for finding casual relationships between variables [Robson
19931. The final form is case studies, which allow data to be collected in its
rawest form. However Robson [19931 suggests that the research design of case
studies has traditionally been very loose, the design often only emerging after a
prolonged involvement in the field collecting data. Robson favours Yins [19891
approach in suggesting that a case study research design should be drawn up
explicitly at the commencement of the research. The research design can be
tailored during the research to take account of any changing circumstances that
the field work throws up. The use of case studies allows a "naturalistic enquiry"
[Lincoln & Guba 19851 to be undertaken, allowing the research findings to be
intrinsically linked to the data. A case provides a framework within which the units
of analysis are fitted [Simister 19941.
95
The data collection for this research was based on the third methodology, case
studies, as it enabled the research findings to be linked to the data. However,
Yin's [1989] methodology of data collection was used whereby the research
design, the questionnaire and interview were drawn up at the start of the research
as it provided a structured approach and only limited time was available in the field
collecting data.
5.3 METHODOLOGY
As stated in Section 5.2 the case study methodology was chosen as the method
of data collection, of which there are two main sources of data; documentation
and people [Simister 1993]. For the purpose of this research a questionnaire was
developed and a structured interview was undertaken at each organisation. Each
method shall now be discussed in tum. A questionnaire, the design of which is
discussed under questionnaire, Section 5.4, was sent to each of the companies
the number sent dependent upon size and turnover of each company. A total of
125 questionnaires were sent out and 110 returned. Miller Civil Engineering were
sent 20 and 20 were returned, British Telecom 70 with 61 returned and GKN 35
with 29 returned. In order to ensure a representative mix of departments and
personnel was surveyed, each company was asked to send a number of
questionnaires to all departments and support functions, ie qualitY, accounts,
procurement, administration as well as the engineering functions. Each company
was to ensure that for each department/support function a Director/Senior Line
Managerto the Junior Secretary was asked to complete a questionnaire. These
departments were chosen because they would be common in all three companies.
If the questionnaires had been sent by job title they may have only been common
to one type of industry and one company and there may not have been an
equivalent in the other industries/companies. For example, Site Agent is common
terminology in Construction but not in Manufacturing or the Service Industry.
The questionnaire contained closed questions as objective answers were required
in the initial research which was necessary to see whether a trend was occunring
in the different organisations; The same questionnaire was used in a further study
in the same organisations with the personnel that had been actively involved in the
implementation of TQM in the organisations. These personnel had already been
identified in the initial interview as described in the introduction, Section 5.1.
The Simister [1994] method of interview technique was used which combined
several categories together. In this research the interview was "focused"
96
[Bouchard 1976] mOving from general to specific topics: questions about the
respondents role on TQM; the timing of their first involvement; an outline of the
tasks undertaken; and totally unstructured questioning. The next stage was very
specific questioning based on the questionnaire to pickup points that the
researcher had noted in the initial analysis of the questionnaires which had been
retumed from the three organisations, but had not been discussed. The aim of
this research was to substantiate the responses to the questions further; to
provide subjective data and to provide bias free data from the respondent.
5.4 THE QUESTIONNAIRE
The questionnaire design, see Tables 5.1 and 5.2, consisted of simple statements
grouped under five main headings, leadership, flexibility commitment,
effectiveness and competitiveness, these being the five key areas from the literary
reviews as indicated in Chapters 1,2 and 3, which are considered fundamental to
the successful implementation or otherwise of TQM in organisations.
Under these five main headings a series of subelements were established, again
based on the literary survey. For example, under commitment is the question as
to whether Quality is the responsibility of the Quality Department
The literary survey highlighted that Quality was everyone's responsibility from
which tangible evidence was required as to whether this was being advocated in
each of the three companies.
Alongside each statement there are three boxes headed, agree, don't know and
disagree. The respondents were asked, from their experience, to tick the
appropriate box alongside each heading. Upon retum of the questionnaires the
number of ticks under each box heading for each subelement were added and
the percentage based on the total number of retumed questionnaires for each
company was calculated with a brief overview. An example is given below:
Example
For leadership three respondents from Miller agreed with subelement 1.1 "My
Manager is personally involved in the quality of my worN'.
3/20 x 100 . 15 per cent of the total number of respondents agreed with this
statement.
In addition to this, individual scores for each main criteria for leadership, flexibility,
97
commitment, effectiveness and competitiveness was also calculated to gain an
insight into the overall perception of leadership etc., in its entirety within each
company. An example is given below:
Example
For leadership there was a total of 30 responses to the questions asked out of a .
possible 100 responses overall, i.e., 5 questions under agree, 20 questionnaires
distributed. The total percentage score relating to leadership under agree for
Miller is 30/100 x 100 30 per cent.
A detailed analysis of each main heading for each subelement against the
percentage of response to each subelement and individual percentages for each
main criteria can be found in Section 5.5, Figures 5.1 to 5.30
5.5 ANAL VSIS OF THE QUESTIONNAIRE
The five elements ofTQM that were highlighted in Chapters 1, 2 and 3, were
adopted as the basis for the questionnaire. Under these five main headings a
series of subelements were established, based on Chapters 1,2 and 3, for
example under commitment is the question as to whether Quality is the
responsibility of the Quality Department Chapter 1 and 2 highlighted that Quality
was everyone's responsibility, which was further advocated, by Juran, Chapter 3, it
was decided to collect tangible evidence as to whether this was being preached in
each of the three target companies.
A copy of the questionnaire and the number of responses percentage scores and
a table for individual scores for each of the main criteria that were distributed to
each of the companies is shown in Tables 5.1,5.2 and 5.3. Figures 5.1 to 5.15
present bar charts that summarises the response to each main heading for each
subelement against the percentage of response to each subelement which is
further substantiated by Figures 5.16 to 5.30. Figures 5.1 to 5.3 indicated that
there was little in the way of leadership with regards to TQM in Miller with limited
involvement from the Senior Managers which was further substantiated by the
results in Figure 5.2, subelements 1.1 and 1.4 and Figures 5.16 to 5.18. The
results also indicated that the majority of respondents disagreed with the
statement that Senior Managers believe in TQM in Miller. Within BT and GKN the
results from the questionnaires indicated the reverse to this, with the majority of
respondents agreeing that their Senior Managers do believe in TQM and that their
behaviour is consistent with the company quality values. Figures 5.4 to 5.6 and
98
Figures 5.19 to 5.21 show that the three companies were comparable on
flexibility with the majority of respondents agreeing that their company systems
allow flexibility. However 31 per cent of respondents indicated that within sub
element 2.2 (Rules and procedures do not prevent me from meeting Customer
requirements) did not know whether this was correct or not. This highlights that
customers demands of a first tier automative company do not allow for deviations
from set procedures unless authorisation is obtained from the customer. This
clearly shows the involvement that customers have with automative companies
and the high standard they expect from their suppliers. Figures 5.7 to 5.9 and
Figures 5.22 to 5.24 show that there is a high degree of commitment within BT
and GKN but significantly lower in Miller. The results also show that BT and GKN
see Quality not being a function of the Quality Department whereas in Miller the
philosophy, from the results of the questionnaires, is that Quality is the function of
the Quality Department. Figure 5.8 demonstrates that personnel within Miller do
not understand that the lack of quality ultimately costs the company money.
Figure 5.10 to 5.12 show that BT and GKN undertake measures to focus on
strengths and weaknesses within their organisations to strive for continuous
improvement. Figure 5.11 indicates that Miller do not focus their attention on the
use of such tools for continuous improvement. Figures 5.10 to 5.12) also
demonstrate that within the Civil Engineering Industry the relationship between
Customer and Supplier is devoid of active participation, communication and
feedback. One of the benefits of implementing TQM is that it may improve a
company's financial position. However Figures 5.13 to 5.14 indicate that the
respondents within Miller do not appreciate the financial implication that a TQM
philosophy can contribute to a company's efficient management. This may be
due, as shown in Figure 5.11, to the lack of measuring that has been undertaken.
It is also evident from Figures 5.14, 5.28, 5.29, and 5.30 that personnel within
Miller believe that they are not given the tools and techniques to fulfil the role that
they are employed to do and as a result it appears that they have found it difficult
to adopt the TQM philosophy unlike BT and GKN.
5.6 STATISTICAL SIGNIRCANCE
The questionnaire, table 5.1, was divided into fIVe sections, each then divided
under agree, don't know and disagree. A summary of the results of the .
questionnaires are shown
on pages 104124. As the sample size was small where n< 30, a t test was
applied to each section to rest the efficacy of the responses.
Each sub section for example 1.1 to 1.5 under agree was tested and then don't
99
know and disagree. This was applied in a like manner to sub sections 15. The
formula that was applied is shown below, along with a working example and finally
a table of the results. The calculations shown are to a 95 per cent confidence
limit. Standard t distribution tables were used with the appropriate degree of
freedom. The formula that was used is given below;.
S2 . { xi
2
. ( { xi ) 2
2 In
n
An example is shown below to test the efficacy of the responses to section 1,
leadership, agree, subcriteria, 1.1 to 1.5.
4
S2 = (5625 + 5476 + 8649 _ 4096 + 6561) . 29954
S2 = 30407 . 29954
4
S2 = 113.25
S =,f 113.25
S = 10.64
therefore, x t * lQ.fi4
2 "7S
77.4 t
77.4 2.776 4.75
therefore, 77.4 13.18
upper = 9.58
lower 64.22
* For this example t is to 4 degrees of freedom.
2
100
Table 5.4 Summary of results to test the efficacy of the responses.
Criteria Agree Don't Know Disagree
Leadership 77.4 % 13.2 ** 20.6 % 6.2 17 %10
Rexibility 63 % 11.4 18 % 7.2 25 % 7.3
Commitment 50 % 389 19 % 5.2 42.5 % 28.6 **
Effectiveness 85.8 % 9.52 10.4 % 3 15.4 % 7.6 **
Competitiveness 79.3 % 35.2 12.7 % 17.3 18 % 11.0
By applying the t test, the results marked with asterisks call into Question the
efficacy of the responses as subcriteria 1.3, 3.1 and 4.1 under agree and
disagree respectively fall outside the allowable limits. By comparing these to the
percentage of response, table 5.2, it is noticeable that there is a significant
difference between Miller and the other two companies, BT and GKN who are
closely aligned. This would substantiate the claim further that total quality
management within this company is not fully understood and is not led by the
managers of the company.
101
Table 5.1 Questionnaire
AGREE
LEADERSHIP
MILLER BT
1.1 My Manager is personally involved in the quality 3 48
of my work
1.2 I get help and support from my Manager when I 5 49
need it
1.3 The behaviour of my Manager is consistent with 14 53
the company quality values
1.4 My Manager's Manager can be relied upon to do 6 39
what he/she says, he/she will do
1.5 Senior Managers believe in TQM 2 54
FLEXIBILITY
2.1 System allows me to take risks to meet 13 39
Customer requirements
2.2 Rules and procedures do not prevent me from 11 35
meeting Customer requirements
2.3 Wrthin the TQM framework I have sufficient 13 36
reedom to achieve my objectives
COMMITMENT
3.1 cost of quality is the expense of doing things 6 53
3.2 Quality is the responsibility of the Quality 9 12
Department
3.3 W something goes wrong it is usually the of 9 33
my supplier
3.4 My customer makes unreasonable demands 11 28
about getting the job done on time
EFFECTIVENESS
4.1 I understand what Customers expect from my 12 43
eam
4.2 My team measures perionmance against the 6 56
Customers requirements
4.3 My team actively uses feedback from Customers 7 52
and Suppliers to help improve perionmance
4.4 My team meets the agreed Customer 11 49
requirements
4.5 People in the Company take responsibility for 13 51
their Customer requirements
COMPETITIVENESS
5.1 QM has given my Company an advantage over 8 55
others
5.2 A Company ilspires confidence in its Customers
c'
.'
35
5,3 I have the necessary tools to do my job 7 56
NB 125 Questionnaires were sent out - II 0 retumed
20 were sent to Miller Civil Engineering - 20 retumed
71 were sent to British Telecom . 61 retumed
35 were sent to GKN Sinter Metals 29 retumed
102
DON'T KNOW DISAGREE
GKN MillER BT GKN MillER BT GKN
24 10 6 3 7 7 2
20 3 3 2 12 9 7
26 2 5 1 4 3 2
19 12 17 8 2 5 2
25 1 3 2 17 4 2
17 3 8 4 4 14 8
16 4 13 9 5 13 4
19 3 7 5 10 18 5
24 11 5 3 4 3 2
3 6 4 5 5 45 21
7 5 11 7 6 17 15
5 4 10 5 5 23 14
21 1 5 3 7 13 5
26 10 2 1 4 3 1
26 4 3 1 9 6 2
23 3 6 4 6 6 2
24 1 5 3 6 5 2
25 8 3 1 4 3 3
19 3 10 7 8 16 3
24 1 2 3 12 3 2
Table 5.2 Percentage of response
AGREE DON"T KNOW OISAGREE
LEADERSHIP
MILLER BT GKN MILLER BT GKN MILLER BT GKN
1.1 My Manager is personally involved in the quality 15 79 83 50 10 10 35 11 6
of my work
1.2 I get help and support from my Manager when I 25 80 69 15 5 7 60 15 24
need it
1.3 The behaviour of my Manager is consistent with 70 87 90 10 8 3 20 5 6
the company quality values
1.4 My Manager's Manager can be relied upon to do 30 64 66 60 28 28 10 8 6
what he/she says, he/she will do
1.5 Senior Managers believe in TQM 10 89 86 5 5 6 85 7 6
flEXIBILITY
2.1 The System allows me to take risks to meet 65 64 58 15 13 14 20 23 28
Customer requirements
2.2 Rules and procedures do not prevent me from 55 57 55 20 21 31 25 21 14
meeting Customer requirements
2.3 Within the TQM framework I have sufficient 65 59 66 15 11 17 20 30 17
freedom to achieve my objectives
COMMITMENT
3.1 The cost of quarity is the expense of doing things 30 87 83 55 8 10 15 5 7
wrong
3.2 Quality is the responsibility of the Quality 45 20 10 30 7 17 25 74 72
Department
3.3 ff something goes wrong it is usually the f a u ~ of 45 54 24 25 18 24 30 36 38
my supplier
3.4 My customer makes unreasonable demands 55 46 17 20 16 17 25 46 66
about getting the job done on time
EFFECTIVENESS
4.1 I understand what Customers expect from my 60 70 72 5 8 10 35 21 17
eam
4.2 My team measures performance against the 3u 92 90 50 3 3 20 5 7
Customers requirements
4.3 My team actively uses feedback from Customers 35 85 90 20 5 3 45 9 7
and Suppliers to help improve performance
4.4 My team meets the agreed Customer 55 80 79 15 9 14 30 9 7
requirements
4.5 People in the Company take responsibility for 65 84 83 5 8 10 30 8 3
!their Customer requirements
COMPETITIVENESS
5.1 ~ Q has given my Company an advantage over 40 90 86 3 5 3 20 5 10
others
5.2 . Company ilspires confidence in its Customers 45 57 66 10 16 24 40 26 10
5.3 I have the necessarv tools to do mv iob 35 92 83 2 3 10 60 5 7
103
1.1
1.2
1.3
1.4
1. 5
LEADERSHIp AGREE
QUESTION MILLER %OF BT %OF
RESPONSE RESPONSE
My Manager is personally involved 3 15 48 79
in the Quality of my work
I get help and support from my 5 25 49 80
Manager when I need
The behaviour of my Manager is 14 70 53 87
consistent the company
values
My Manager's Manager can be 6 30 39 64
relied upon to do what he/she
says, he/she will do
Senior Managers believe in TQM 2 10 54 89
LEADERSHIP - AGREE
0-
_C
Cl)
3l E
o Cl)
0..'
1/).0
Cl) :::s
J.,. I/)
o 0
o Cl)
80
60
40
20
o
1.1 1.2 1.3 1.4 1.5
Sub-element
Figure 5.1
104
GKN %OF
RESPONSE
24 83
20 69
26 90
19 66
25 86
III MILLER
. ST
OG<N
LEADERSHIp DON'T KNOW
QUESTION MI LLER %OF BT %OF GKN %OF
RESPONSE RESPONSE RESPONSE
1.1 My Manager is personally involved 10 50 6 10 3 10
in the quality of my work
1.2 I get help and support from my 3 15 3 5 2 7
Manager when I need ij
1.3 The behaviour of my Manager is 2 10 5 8 1 3
consistent with the company
quality values
lA My Manage(s Manager can be 12 60 17 28 8 28
relied upon to do what he/she
says, he/she will do
1.5 Senior Managers believe in TQM 1 5 3 5 2 6
LEADERSHIP - DON'T KNOW
70
~
(.)
60
III
Cl)
0
...
50
c:
...
Cl)
_ MILLER
Cl)
E
40
I/)
. ST ~
30
o cp
Q.,g
OGKN
I/) :::l
20
e I/)
-
10 0
~
0
0
1.1 1.2 1.3 1.4 1.5
Sub-element
Figure 5.2
105
1.1
1.2
1.3
1.4
1.5
LEADERSHIp DISAGREE
QUESTION MILLER %OF BT %OF
RESPONSE RESPONSE
My Manager is personally 7 35 7 11
involved in the quality of my work
I get help and support from my 12 60 9 15
Manager when I need it
The behaviour of my Manager is 4 20 3 5
consistent with the company
quality values
My Manage(s Manager can be 2 10 5 8
relied upon to do what he/she
says, he/she will do
Senior Managers believe in TQM 17 85 4 7
LEADERSHIP - DISAGREE
90
"fi 80
:E 70
.....
.s ; 60
Cl) E 50
Cl)
o Qj 40
c.'
1/).0 30
Cl) :::s
... I/) 20
....
o 10
Q 0
1.1 1.2 1.3 1.4 1.5
Sub-element
Figure 5.3
106
GKN %OF
RESPONSE
2 6
7 24
2 6
2 6
2 6
2.1
2.2
2.3
FlEXJBIUTY . AGREE
QUESTION MILLER %OF BT %OF
RESPONSE RESPONSE
The System allows me to take 3 65 39 64
risks to meet Customer
requirements
Rules and procedures do not 11 55 35 57
prevent me from meeting
Customer requirements
Wrthin the TQM framework I have 13 65 36 59
sufficient freedom to achieve my
objectives
FLEXlBIUTY - AGREE
0-
_C
Q)
Q) E
en Q)
C_
O Q)
Q.'
en.Q
Q) ::l
10. en
-.t:.
o 0
~ n s
o Q)
70
65
60
55
50
45
2.1 2.2
Sub-element
Figure 5.4
107
2.3
GKN %OF
RESPONSE
17 58
16 55
19 66
11 MILLER
11 BT
OGKN
2.1
2.2
2.3
FLXJ8Il.JTY - DON'T KNOW
QUESTION MILLER %OF 8T % OF
RESPONSE RESPONSE
The System allows me to take 3 15 8 13
risks to meet Customer
requirements
Rules and procedures do not 4 20 13 21
prevent me from meeting
Customer requirements
Within the TQM framework I have 3 15 7 11
sufficient freedom to achieve my
objectives
FLEXlBlUTY - DON'T KNOW
-
35
0
I::
30
-
Cl)
Cl) E
25
In Cl)
1::_
20 o cp
0..0
15
In ::::J
In
10
-.r::.
o ()
5
o Cl)
0
2.1 2.2
Figure 5.5
108
2.3
GKN % OF
RESPONSE
4 14
9 31
5 17
11 MILLER
. BT
OGKN
FLXIBIUTY . DISAGREE
QUESTION MILLER %OF BT %OF
RESPONSE RESPONSE
2.1 The System allows me to take 4 20 14 23
risks to meet Customer
requirements
2.2 Rules and procedures do not 5 25 13 21
prevent me from meeting
Customer requirements
2.3 Wrthin the TQM framework I have 4 20 18 30
sufficient freedom to achieve my
objectives
FLEXlBlUTY - DISAGREE
0-
_I:
Cl) Cl)
III E
I: Cl)
Oq>
Q...c
I/) :::l
~ III
.... ..c
o (.)
~ c
o Cl)
35
30
25
20
15
10
5
o
2.1 2.2
Sub-element
Figure 5.6
109
2.3
GKN %OF
RESPONSE
8
4
5
11 MILLER
. BT
OGKN
28
14
17
COMMITMENT AGREE
QUESTION MILLER %OF BT %OF
RESPONSE RESPONSE
3.1 The cost of quality is the expense 6 30 53 87
of doing things wrong
3.2 Quality is the responsibility of the 9 45 12 20
Quality Department
3.3 If something goes wrong ~ is 9 45 33 54
usually the f u ~ of my supplier
3.4 My customer makes unreasonable 11 55 28 46
demands about getting the job
done on time
COMMITMENT - AGREE
0-
100
_c
Cl)
80
Cl) E
I/) Cl)
c_
60
o cp
c..,Q
I/) ::s
40
e I/)
-..c:
o 0
20
~ c o
o Cl)
0
3.1 3.2 3.3 3.4
Sub-eJement
Figure 5.7
110
GKN %OF
RESPONSE
24 83
3 10
7 24
5 17
MILLER
. BT
OG<N
COMMrTMENT OON'T KNOW
QUESTION MILLER %OF BT %OF GKN %OF
RESPONSE RESPONSE RESPONSE
3.1 The cost of quality is the expense 11 55 5 8 3 10
of doing things wrong
3.2 Quality is the responsibility of the 6 30 4 7 5 17
Quality Department
3.3 If something goes wrong tt is 5 25 11 18 7 24
usually the fault of my supplier
3.4 My customer makes unreasonable 4 20 10 16 5 17
demands about gettng the job
done on time
COMMITMENT - DON'T KNOW
60
0-
_c
50
Cl)
Cl) E
11 MILLER
I/) Cl)
40 c_
O Cl)
30 . BT
0..'
1/).0
Cl) ::l
20
OGKN
... I/)
-.r:.
o (.)
10
o Cl)
0
3.1 3.2 3.3 3.4
Figure 5.8
111
COMMITMENT DISAGREE
QUESTION MILLER %OF BT %OF
RESPONSE RESPONSE
3.1 The cost of quality is the expense 3 15 3 5
of doing things wrong
3.2 Quality is the responsibility of the 5 25 45 74
Quality Department
3.3 If something goes wrong it is 6 30 22 36
usually the fault of my supplier
3.4 My customer makes unreasonable 5 25 28 46
demands about getting the job
done on time
COMMITMENT - DISAGREE
0-
80
_I::
Cl)
Cl) E
60
U) Cl)
c_
O cp
40 c..Q
U) ::J
e U)
-.c:
20
o (.)
~ C l
o Cl)
0
3.1 3.2 3.3 3.4
Sub-element
Figure 5.9
112
GKN %OF
RESPONSE
2 7
21 72
11 38
19 66
_ MILLER
. BT
OG<N
EfFECTIVENESS AGREE
QUESTION MILLER %OF BT %OF
RESPONSE RESPONSE
4.1 I understand what Customers 21 60 43 70
expect from my team
4.2 My team measures perfonmance 6 30 56 92
against the Customers
requirements
4.3 My team actively uses feedback 7 35 52 85
from Customers and Suppliers to
help improve perfonmance
4.4 My team meets the agreed 11 55 49 80
Customer requirements
4.5 People in the Company take 13 65 51 84
responsibility for their Customer
requirements
EFFECTIVENESS - AGREE
-
100
0
c
-
Q)
80
Q) E
IJ) Q)
C_
60
o cp
c.,a
IJ) :s
40
~ IJ)
-..s:::::
o (.)
20
~ c
o Q)
0
4.1 4.2 4.3 4.4 4.5
Sub-element
Figure 5.10
113
GKN % OF
RESPONSE
21 72
26 90
26 90
23 79
24 83
III MILLER
. BT
OCKN
4.1
4.2
4.3
4.4
4.5
EFFECTh'ENESS . DON'T KNOW
QUESTION MILLER %OF BT %OF GKN %OF
RESPONSE RESPONSE RESPONSE
I understand what Customers 1 5 5 8 3 10
expect from my team
My team measures performance 10 50 2 3 1 3
against the Customers
requirements
My team actively uses feedback 4 20 3 5 1 3
from Customers and Suppliers to
help improve performance
My team meets the agreed 3 15 6 9 4 14
Customer requirements
People in the Company take 1 5 5 8 3 10
responsibility for their Customer
requirements
EFFECTIVENESS - DON'T KNOW
-
60
0
c
-
Cl)
50
Cl) E
t/I Cl)
40 c_
O cp
30 Q..o
t/I j
20 t/I
.... .s::,
o (.)
10
~ R
o Cl)
0
4.1 4.2 4.3 4.4
Sub-element
Figure 5.11
114
4.5
11 MILLER
. ST
OGKN
EFFECTlVENESS . DISAGREE
QUESTION MILLER %OF BT %OF GKN %OF
RESPONSE RESPONSE RESPONSE
4.1 I understand what Customers 7 35 13 21 5 17
expect from my team
4.2 My team measures performance 4 20 3 5 2 7
against the Customers
requirements
4.3 My team actively uses feedback 9 45 6 9 2 7
from Customers and Suppliers to
help improve performance
4.4 My team meets the agreed 6 30 6 9 2 7
Customer requirements
4.5 People in the Company take 6 30 5 8 1 3
responsibility for their Customer
reauirements
EFFECfIVENESS - DISAGREE
-
50
0
t:
-
Cl)
40
Cl) E
t/) Cl)
t:_
30
o cp
c...Q
t/) ::::I
20
~ t/)
-.r:.
o 0
10
~ C I S
o Cl)
0
4.1 4.2 4.3 4.4
Sub-element
Figure 5.12
115
4.5
11 MILLER
. ST
OG<N
COMPETITIVENESS AGREE
QUESTION MILLER %OF BT %OF GKN %OF
RESPONSE RESPONSE RESPONSE
5.1 TQM has given my Company an 8 40 55 90 25 86
advantage over others
5.2 A Company inspires confidence in 9 45 35 57 19 66
~ s Customers
5.3 I have the necessary tools to do 7 35 56 92 24 83
my job
COMPETITIVENESS - AGREE
100
0-
_C
Cl)
80
Cl) E
IIJ Cl)
Il MILLER
c_
60
o cp
c...Q
. BT
IIJ :s
40
f IIJ
OGKN
-..c
o (,)
20
~ I O
o Cl)
0
5.1 5.2 5.3
Sub-element
Figure 5.13
116
COMPETJT1VENESS . DON'T KNOW
QUESnoN MILLER %OF BT %OF GKN %OF
RESPONSE RESPONSE RESPONSE
5.1 TQM has given my Company an 8 40 3 5 1 3
advantage over others
3.2 A Company inspires confidence in 3 15 10 16 7 24
its Customers
5.3 I have the necessary tools to do 1 5 2 3 3 10
mviob
COMPETITIVENESS - OON'T KNOW
50
0-
_I::
Q)
40
Q) E
I/) Q)
III MILLER
1::_
30
o cp
0..0
BT
I/) :::J
20
~ I/)
OGKN
-.s:::.
o (.)
10
~ n
o Q)
0
5.1 5.2 5.3
Sub-element
Figure 5.14
117
COMPETTTlVENESS DlSAGREE
QUESTION MILLER %OF BT %OF GKN %OF
RESPONSE RESPONSE RESPONSE
5.1 TQM has gIVen my Company an 4 20 3 5 3 10
advantage over others
5.2 ~ Company inspires confidence in 8 40 16 26 3 10
rts Customers
5.3 I: have the necessary tools to do 12 60 3 5 2 7
my iob
COMPETITIVENESS - DISAGREE
70
J:
CJ
60
III
Q)
0
-
50
c
-
Q)
_ MILLER
Q)
E
40
III
. ST
~
30 o q>
OGKN Q.,o
III ::l
20
~ III
....
10
0
~
0
0
5.1 5.2 5.3
Sub-element
Figure 5.15
118
Table 5.3 Individual Percentages for leadership, flexibirrty, commibnent,
effectiveness and competitiveness.
Agree Don't Know Disagree
Miller BT GKN Miller BT GKN Miller BT GKN
Leadership 30 80 79 28 II 11 42 9 10
Flexibility 56 60 60 15 15 20 29 25 20
Commitment 43 52 35 32 12 18 25 36 47
Effectiveness 49 82 83 19 7 9 32 11 9
Competitiveness 40 80 70 20 8 11 40 12 19
I Agr .. 30,," I
Figure 5.16 . Miller Leadership
/
I Agree . 01110 I
Figure 5.17 . B T Leadership
119
I Aorll 11% I
Figure 5.18 . GKN Leadership
/ CCI ,-,,,-,=,, ... "'1
Figure 5.19 . Miller Flexibility
---
I Air .. 80,. 1
Figure 5.20 - BT Flexibility
120
I A;r .. eo,., 1
Figure 5.21 . GKN Rexibilily
Figure 5.22 . Miller Commibnent
I Agree 52% I
Figure 5.23 . BT Commibnent
121
t Agt .. lS'" 1
Figure 5.24 - GKN Commitment
I Agr 9 ~ 1
Figure 5.25 - Miller Effectiveness
t Agt .. II2'" 1
Figure 5.26 - 8T Effectiveness
122
Figure 5.27 - GKN Effectiveness
I Alilr .. 40' I
Figure 5.28 - Miller Competitiveness
I Agr .. ao,," I
Figure 5.29 - BT Competitiveness
123
I All'" 7 ~ I
Figure 5.30 . GKN Competitiveness
5.7 DISCUSSION
Section 5.5 highlighted significant differences between the three targeted
companies, with flexibility being the only comparable area. Chapter 2 indicated
that there were significant deficiencies and inefficiencies within the Construction
Sector and the respondents to the questionnaires appear to substantiate these
claims. It would be inappropriate to end the research here between the three
companies without visiting the respective organisations and discussing the areas
of shortfall in order to establish definitive areas of strengths and weaknesses and
hence best practice.
5.8 Tl1E Tl1REE TARGETED COMPANIES STRATEGIC APPROACH TO TQM . Tl1E
INTERVIEWS
From the results of the analysis of the questionnaire each Quality Manager within
each company, Miller Civil Engineering, BT and GKN were interviewed; The
purpose of the interview was to:
substantiate or otherwise the results of the questionnaire;
to determine the philosophy and values within each organisation; and
to determine the location and geographical spread to ascertain as to
whether this had an effect on the implementation of TQM.
In order to collect the data and to ensure that there was continuity between the
interview, the first data collection exercise and the five key themes in the
implementation of TQM as highlighted in Chapter 1, Section 1.4, the questionnaire
was again used as the basis of the interview along with the analysis of the results.
In addition to this the steps to TQM [Oakland 1990] Figure 1.3, Chapter 1, Section
124
1.2, was also used to gather specific information in order to benchmark each of
the companies which would highlight areas of strengths and weaknesses.
5.8.1 Miller Civil Engineering (MC E)
MCE are part of the Miller Group; a privately owned company that has an annual
turnover of 81 million. MCE have implemented Management Systems since circa
1990 and have been third party accredited with BSI since 1992 and ISO 9001
registered since 1997.
They have a quality policy which states:
': ....... develop and implement quality management systems which are appropriate
to its own operation and take account of the intemal and extemal client services it
provides. The Quality Management System shall be developed in accordance with
the requirements of the relevant part of BS 5750/lS0 9000 or nationally /
intemationally recognised sector scheme . where appropriate, third party
accreditation shall be obtained. ............. "[The Miller Group Quality Policy 1996)
The Quality Department initially in 1990 consisted of one person the Quality
Manager who had been seconded from the Design Office to "write a management
system in order to get ISO 9002'. That person had no training in managements
systems, no contact with Clients or the like in order to learn from others and no
form of quality training was undertaken with other personnel. No form of cost
exercise was carried out to determine whether a Management System would
make the company more efficient, indeed no form of measurement was
undertaken. The Management System was one large volume based exactly on the
ISO standard. The culture of the company was very much bottom up. However
they did achieve registration to ISO 9002 in 1992.
Since circa 1995 the Quality Department has increased to four, although there is
still no representation on the Board. There is a strategy and moves are afoot to
implement key performance indicators on softer issues for example absenteeism,
corrective action reports, (Appendix A, B, C) as well as those advocated by
Sir John Egan as members of the Major Contractors Group, refer to Chapter 2.
Attendance at local forums with other contractors,academia and the like is
undertaken in order to "learn and improve" from others and continuous
improvement teams are actively encouraged. A rigorous training programme has
now b.een undertaken from the basic of "why implement Management Systems?"to
Quality Planning to instilling the tools and tecnniques of continuous improvement
125
with either cross or non crossfunctional teams. However the use of these are
limited and are still led by the Quality Team. The setting of targets and objectives
and measures for improvement, although progressing in that direction is slow and
is again being led by the Quality Team. The only form of statistical analysis is on
concrete.
The indication is that quality is still being paid lip services from top management
and that their participation in for example the Major Contractors Group is because
their competitors are in the same Group.
The diversity of the business in terms of location, distance and different teams per
project is still a problem area as there is still a leaming curve that needs to be
overcome on each project. MCE have seen over the past two years a greater
interest in the implementation of their Management Systems especially at tender
stage. Clients are undertaking audits as part of the process from moving from
lowest price to reviewing other significant issues. However, the split is still 80/20
with 80 representing the lower price.
5.8.2 Briitish Telecom PLC
BT sell a service of telecommunications with an annual tumover in London of 10
billion. BT have embarked upon the route of management systems since circa
1987 when the Chairman of BT issued the Quality Policy Statement, together with
the Company Vision and Mission Statement. A Group Quality Director for BT was
appointed who sat on the main board. Each division for which London is one, a
Quality Department was instigated with that Quality Manager reporting to a
Director.
Initially all management staff were introduced to the concept of quality by using
simple models as laid down by the experts in quality Chapter 3 such as which car
epitomises quality the Rolls Royce or the Mini. The concept of quality was
realized although at this stage not fully understood. People were left with the
thought that quality is not synonymous with cost, but delivers to a customer a
commodity to suit both their needs and pockets. In fact the mini should be and
was as reliable as the Rolls Royce for any given mileage up to the manufacturers
stated maximum. BT also gave each manager a one day seminar to understand
the concepts of fit for purpose at the most economic cost with the courses being
run by the Quality Department in conjunction with BSI. All management staff
attended a two day seminar for the introduction of the Tools and Techniques of
QMS with the first part concentrating on the QMS Activity Model [BT 1988] and the
126
second part on the tools and techniques. Following this, management staff
attended a series of seminars of three days in duration where real live issues were
subject to scrutiny students applied QMS techniques to improve the through put
of a particular service. Techniques that they had leamt to date.
Following this management training, the workforce was then educated in the
purpose and operation of a QMS. They were conducted within Business Unit
Groups, still in multidisciplined geographical areas. A crosssection of personnel
for Business Units were inducted into Quality with their intemal customers and
suppliers with the courses being led by a Business Unit Manager, their Line
Manager, with guidance only being provided by the Quality Department. The
courses were a mixture of lectures and syndicate work. The seminars proved
useful in helping people to understand who were their intemal suppliers and
customers.
The procedures which had been issued to all parties, tended to be written in
pseudolegal terms and some tended to be over bureaucratic. Quality
Improvement Plans were instigated where nonmanagerial staff sought to resolve
problems at the supplier customer interface. All staff were encouraged to believe
that they were responsible for Quality with everyone being issued a job file with
processes and procedures covering all disciplines that had not been based on the
ISO standard. Measures were introduced within BT in order for them to
benchmark to see whether they were improving from one year to the next. Every
person knew what was expected of them and felt that they at last knew what was
happening which had a knock on effect to the extemal customer with costs for
example being reduced because of greater efficiency with customers coming to
expect telephones to be installed within 2 or 3 days of ordering as opposed to the
2 or 3 weeks in the past, fault clearance being reduced.
BT achieved accreditation to ISO 9001 in 1992 and the European Quality Award in
1995 which was the directive the Chairman issued in 1987.
5.8.3 GKN Sinter Metals Ltd (GKN S.M.L.)
GKN S.M.L. Lichfield, which is where the research was based, in one of twenty
three powder metallurgy companies that GKN plc own, with a tumover of 25
million.
The cc;)mpany has a dedicated Quality Department consisting of a Quality Manager
who reports to the Operations Director, who in tum reports to the Vice President
127
of Operations and Technology who sits on the board of GKN Sinter Metals world
wide; a Supplier Quality Auditor, who has a two year rolling programme to audit
the company's preferred suppliers; and a number of Quality Engineers who's
responsibility is to discuss any concems with GKN Sinter Metals (lichfield)
customers.
Prior to 1992 there was no policy towards TQM on the Lichfield site. The
philosophy was that quality was the responsibility of the Quality Department and
that they would ensure the quality of products produced. This culture was not only
limited to some managers but was endemic on the shop floor where the average
time with GKN was fourteen years.
In 1992 a plan was put together by Senior Management that would be lead by
them and would involve all employees. The plar. was initiated by the introduction
of Management Systems based upon ISO 9002. The company successfully
gained accreditation in 1990 and as a result wanted to build upon this with
continual measures and timing plans commonly known in the company as TQM.
All employees were taken through the devised training programme of what the
TQM philosophy was, why they needed to embrace the concept and the benefits
that could be gained from it. The courses were provided by the Quality
Department in particular by the Quality Manager and were in house and lecture
based. It was completed within 12 months.
T r.aining progr.ammes were put together explaining the total philosophy behind
SPC again by the Quality Department and how they could be involved in reducing
scrap and rework, refer to Appendix D for an example. In 1991 post process
gauging, where components are measured after being produced against a
specification and recorded in the form of a chart, commonly known as statiStical
process control had been introduced. It had been the start of the philosophy of
people being responsible for their own work.
Team working and problem solving was introduced which in tum encourage
people to identify issues. Other tools and techniques such as Productivity Europe
[1997] meaning workshop organisation which educates personnel on house
keeping, the tools and techniques of Continuous Improvement such as Ishikawa
[Oakland 1990] and the fishbone Diagram to mention but a few. Gemba Kanri and
Group Technology, [Productivity Europe 1997] was introduced by an external
consultant and delegates on the course ranged from the very top, the Oper.ations
128
Director through to Senior Managers, Shift Managers, Group Leaders and the like.
Personnel were given the time and resources by management to instigate small
working parties using the tools and techniques.
GKN has actively employed the philosophy of the supplier/customer chain,
Chapter 2, Section 2.1, educating people that delighting the customer does not
refer just to the external customer i.e. Ford or Rover but it also means your
colleague further down the process route, ensuring they do not have problems
that were created by others. Ensuring paperwork is completed correctly so that
administration staff can do their job without timely delays. This is how the
personnel at GKN S.M.L. Lichfield have been given the "Tools and Techniques" to
move forward on the road of continuous improvement where things are constantly
reviewed looking at how to refine things even more. Initially all of these initiatives
were time consuming when people would be training or working in teams on
problems. These constraints on valuable time are needed so that the gains can
be made and are eventually self financing in that by preventing problems
occurring, frees up time that had previously been spent resolving problems. This
can now be spent producing products. Investments have been made to reduce
time spent on mundane and labourious operations such as automated SPC, where
once measured the pressing of a button will record the reading on to a
computerised SPC screen. Inprocess gauging is now used whereby the
component is measured during the machining cycle, thus allowing the machine to
continue unless the specification is not achieved. This also helps to reduce scrap
by finding problems earlier in the process cycle.
Table 5.5 provides a comparison of three targeted companies.
5.9 A COMPARATIVE DISCUSSION OF THREE TARGETED COMPANIES
From the results of the analysis and the interviews it can be observed that, for the
three targeted companies, five factors dominate the implementation of TQM in
their companies and hence the focus of their continual improvement. These are:
location and geographical spread;
training;
measures and target areas of improvement; .
leadership; and .
commitment.
129 ..
The dominant factor of location and geographical spread is a concern in the
implementation of TQM in the civil engineering sector as the products and
services of their business operations are not transportable. Different teams,
different working conditions and different projects varying in length of time do not
encourage teamwork one which is of strategic importance in the other two
industries.
The general absence of any structured training within Miller present a case for an
improvement in the scope of their concerns.
Both Juran and Deming pointed to the fact in their messages and briefs that
training needs to be provided and that the costs of education and training for
quality will be repaid many times over by greater output. Indeed the training
clause in the ISO 9000 standard states that" The supplier shall establish and
maintain documented procedures for identifying training needs and provide for the
training of all personnel performing activities affecting quality. .... " All three
companies in the Case Studies have seen the wisdom in doing this with clear
training programmes in place from educating personnel on the meaning of quality
through to the understanding of ISO 9000 to the tools and techniques of
continuous improvement. However for the likes of Miller it has been done many
years after the Management System has been implemented. Only a handful of
personnel had been on any specific quality training courses prior to accreditation
which the author feels has been of hindrance to the company ever since.
Evidence from the analysis and interviews point to the absence of measures and
targeted areas of improvement in Miller but one which is employed with success
to the other two companies where measured improvement has been instrumental
in the implementation and understanding of TQM in BT and GKN. Exploiting the
development of such tools and techniques have provided an opportunity of
improvement which Miller and the construction sector could use to minimise
business risks but increase awareness.
As seen in Chapter 2, quality has to be managed it will not just happen. The
ability to meet the customer requirements is vital, not only between two separate
organisations, but within an organisation and that the quality chain can be broken
at any point, by one person or piece of equipment not meeting the requirements
of the customer, internal or external. How many companies have put measures in
place .or carried out departmental purpose analysis or indeed raised a conrective
action report as ISO 9000 states all methods of continuous improvement? All
130
standard practice at BT and GKN but at Millers even after many years of
implementing Management systems not one Senior Manager has raised a
corrective action report and very few other "internal" customers and suppliers
have done so!
The noninclusion and lack of clear leadership and commitment from Senior
Managers within Miller provides perhaps a consistent view of an industry that is
still constrained by scepticism and legal and contractual framewor1<s.
The first clause of ISO 9000 states that n The suppliers management with
Executive responslbtlity shall define and document its policy for quality. ....... The
supplier shall ensure that this policy is understood, implemented and maintained at
alllevels of the organisation .... ". Leadership and commitment are the key words
here with management having a policy and committing the organisation to
management systems. These key words are advocated by all the Guru's
especially Crosby with his first step in his fourteen steps to Quality Improvement
stating "Make it clear that Management is committed to quality': This can be
substantiated further by the results and analysis of the questionnaires in Chapter
5. It is in this one company namely Miller where Quality and Management
Systems is seen as a public relations exercise, with little or known measurable
output, with individuals having no accountability or ownership to problems. But
this same company has a Quality Policy signed by the Chairman which clearly
commits the company to Management Systems by stating in response to the
question "Senior Managers believe in TQM" The percentage of respondents polled
in the three companies 10% agreed with this statement in Millers, 89% agreed in
BT and 86% agreed in GKN.
In BT and GKN the longterm commitment of their Senior Managers in terms of
resource, time and lead has provided a longterm relationship with both their
employees and clients which has Significantly influenced the implementation of
TQM in their companies and their business sectors. It has provided areas of real
improvements, in process management the relationships with their customers and
provided savings both in time and money which, ultimately will be a mutual benefrt
to all parties.
131
Table 5.5 Comparison of the Three Targeted Companies
TQM Elements Miller BT GKN Comments
A Understanding through education and tI tI tI MCE now undertake training, although has been and afterthought.
awareness programmes, quality
BT and GKN have instigated structured training programmes from the start involving all
principles. levels.
B policy & planning.
1 tI tI clear values and leadership from the top at BT & GKN
C Measurement costs. 1 tI tI MCE do not undertake any kind of measurement in terms of the setting of objectives and
targets. Common practice at BT and GKN.
D Purchasing and goods received. 1 tI tI Evidence that supplier customer chain has an impact at BT and GKN.
E Quality Systems, design, implementation tI tI tI Companies are comparable on this.
and review.
F Capability and control. tI tI tI SPC common practice at GKN with measured success.
SPC at Miller in the area of concrete.
G Teamwork, involvement, problem 1 tI tI continuous improvement teams are evident at Miller but is
solving. Time freed up at BT and GKN.
H Training and education tI tI tI
Training and education is structured and ongoing at BT and GKN. Embarking on at
Miller. Programme in place.
......
w
w
Table 5.6 Evaluation Model
Barriers to the Implementation Proposed Solutions and Actions
of TQM within the Construction
Industry
Lack of Leadership and Commitment Senior Management to have clear, defined roles within the companies Management System. Consider Job Files with defined targets and
measures.
Senior Management to be included more frequently on the internal programme.
Take Ownership to procedures.
Senior Management to take an active role in the deployment of the system i.e. question that method statement, perionn an internal audit.
Bodies to include Senior Management on their programmes.
Understanding the word QUALITY Take out the word Use Business Systems or Management Systems.
Do not base the companies system around ISO 9000 clauses.
Use terminology and headings that people are familiar with.
After initial implementation a dedicated Deparbnent is not needed. A coordinator would suffice so long as individuals have clear lines
of communication, targets, ownership, and are proficient in auditing techniques.
Have clear ownership of procedures rather than a member of the Team.
Ensure all staff understand the word and significance within the organisation.
Encourage personnel to other deparbnents as part of the customer supplier chain. .
Nonconfonning product Instead of the nonconfonnance or corrective and preventive action corrective action report use the word 'Business Improvement".
PJways include cost
Ensure the root cause is identified.
Analyse trends.
Publicise resuRs showing areas of improvement and non improvement
Set clear targets and have clear action plans to meet those targets.
Training Have a clear education and training programme in place before embarking on implementing systems.
Ensure aD personnel attend including the very top. If they do not attend win dernonstrate a lack of commitment to other personnel and
start the 'ipservice" syndrome.
Ensure the training programme is not a one of exercise and is developed and continued.
Encourage procedural owners to present training on procedures.
Barriers to the Implementation Proposed Solutions and Actions
of TQM within the Construction
Industry
Flexibility of the system Keep simple
Do not base the company procedures on ISO standard
Have procedural owners
Consider the use of flow/process charts
Laminate the flow/process charts
Consider the use of technology such as computers to make the system more accessible and to use search methodologies associated with
these
Measure Measure, measure, measure on both soft and hard issues such as absenteeism, plant, breakdown, safely, defects etc.
Ensure different department/managers take responsibility for these measures
Instigate improvement plans
Publicise results
Forum Take up membership with the like minded companies both inside and outside business sector
Benchmark but remember the European Code of Condue!
Benchmark internally ij your company is part of a group.
5.10 SUMMARY
The chapter has employed a case study analysis and a "focussed" interview to
evaluate the strategic approach of TQM in each of the three targeted companies.
The analysis revealed that five factors dominate the implementation of TQM.
These were location and geographical spread, training, measures and targeted
areas of improvement, leadership and commitment. The evidence from the
analysis suggests that Miller and hence the construction industry give little or no
consideration to these factors and that location and geographical may have an
influence. If the data from this analysis is compared to the thoughts of the
experts in Chapter 3 and the steps to TQM Chapter 1 the following strengths and
weaknesses in the implementation of TQM in the three targeted companies may
be summarised.
--
One or two inferences could be drawn from the outcome of the analysis. First,
that construction contractors give consideration to the factors of geographical
spread and training, in their search for meeting their target for the implementation
of TQM, however, no advantage is seen in the factors of measurement, leadership
and commitment and that TQM can be implemented bottom up. Second, and the
most obvious, is that these factors do not receive any attention from construction
contractors in their search for continuous improvement. The evaluation model
Table 5.6, highlights the cited problems in this research in the implementation of
TQM within the construction industry and provides solutions to avoid unnecessary
pitfalls in its pursuit of TQM. Each contractor can identify from the model where
their weaknesses are and put an action plan in place. As with the Guru's they
cannot be used in isolation.
135
136
Chapter 6
Conclusions and Recommendations
6.1 CONCLUSIONS
The motivation for this research was the need to improve the effectiveness and
efficiency of the Construction Industry, and specifically the implementation of TQM
within the industry. The importance of this "tool" to the long term survival of the
construction industry is selfevident. In a business environment which traditionally
earned a reputation as a costly, inefficient and confrontational business, the need
to improve its structure, image, education/training and R & D cannot be over
emphasised. The nature of the construction industries business and the pressures
it is facing has been depicted in Chapter 2 as changing from a national outlook to
a global one. This change has meant that reliance on the present as the basis for
the future of the industry may no longer be satisfactory. The industry needs to
anticipate and shape their longterm future, while remaining flexible enough to
respond to changing situations.
As a first step to improving the industries effectiveness and efficiencies of its
practices, the main objectives of this research, as stated in Chapter 1, Section
1.3, was to establish the current thinking on the subject area from a state of the
art review; to define the meaning of TQM and the benefits that it can bring; to
highlight the structural components of TQM; to determine the benefits, if any, on
selected companies that have introduced TQM; and to analyse the effects that
TQM has had on the employees of such companies. An industries approach and
the importance it places on the implementation of TQM is usually distracted by the
importance that its clients place on it. The research was developed by using a
questionnaire and structured interview approach for assessing the implementation
of TQM in the three targeted companies. The rational of the questionnaire and
interview was to provide evaluations that would facilitate the construction industry
to move from a costly, inefficient industry, Chapter 2, to one of improved
structure and image.
137
The following conclusions which relate to the various objectives and hence
sections of this thesis have been drawn from the research.
Objective One
Establish the current thinking on the subject area from a state of the art review
. the overriding theme and conclusions that may be drawn from the current
thinking is that price is no longer the determining factor. Consumers are now
placing a higher value on the quality and reliability of that product or service and if
that means being disloyal to homegrown industries then albeit. Companies are
now competing on three issues quality, price and delivery. Quality needs to be
managed, involving everyone in the intemal/extemal supplier/customer chain
knowing that the failure to meet the requirements, in any part of the quality chain
has a way of multiplying with failure in one part of the system creating problems
elsewhere, leading to yet more failure.
ISO 9000 was to aid the construction industry but unfortunately has been
associated with criticisms that it is too bureaucratic, costly administratively and
causes loss of innovation. However, it was also significant in this review that the
client within the Construction Industry has a less active role in the implementation
of ISO 9000 with only a handful of client's within construction demanding that
their contractors operate a quality assurance system with even fewer auditing
their system. In the other two industries one has to be prepared to implement an
industry standard QS 9000 developed by leading clients within the manufacturing
industry and the other has a very high public profile overlooked by an industry
''watchdog'' . OFTEL. Rnally other conclusions that can be drawn from this review
is that "partnering" with your clients and contractors will soon become the norm
mOving the product or service even further away from price alone and other
initiatives come into being for example the BFQM Model. Companies have to be
prepared to review their current business objectives and directives to see whether
they will be a company for the next millennium.
Objective Two
Define the meaning of TQM and the benefits that it can bring . TQM is a way of
improving the effectiveness, flexibility and competitiveness of a business as a
whole. It involves teamwork, is applicable to any industry and involves everyone in
the supplier/customer chain, each person and each activitY affecting the other in
turn. Chapters 2 and 5 highlights that for those companies that implements TQM
successfully and believes in it the rewards can be tremendous. It enables a
company to focus clearly on its markets, critically and continually examine all
138
processes to remove nonproductive activities and waste, it enables effective
communications and involvement and it encourages improvements and
suggestions from individuals and work groups.
Objective Three
Highlight the structural components of TQM . There are three major
components to TQM:-
a documented management system with the aim of providing the "operator" with
consistency and satisfaction in terms of methods, materials and equipment;
statistical process control (SPC) . this being a strategy for reducing variability
whether it be variation in products, peoples attitudes, in equipment and its use
and so on. However, the most significant aspect of the companywide adoption
of TQM and act as the focal point of never ending improvement; and
teamwork essential for the implementation of TQM as it build up trust,
improves communication and develops interdependence on all facets of Human
Resource management.
The most important factor when implementing TQM and one which cannot be ignored is
the level of Management Commitment that is involved. As highlighted in Chapters 1, 2,
3, 4 and 5 without this important criteria TQM is endanger of becoming a "gimmick"
with no ownership rather than an important Management tool.
Objective Four
Determine the benefits, if any, on selected companies that have introduced
TQM . within the Miller Group it has been difficult to determine the benefits that
have derived from them implementing TQM as very few measures have been
instigated. It has undoubtedly increased the level of teamwork, identified and
encouraged areas for improvement and it has enabled them to compete and
successfully win some prestigious contracts as they see more of their clients
move away from the traditional price only criteria. However, in the area of
whether it has made them more efficient they are currently unable to quantify this.
With regard to British Telecom customers can now expect to have their
telephones installed 2 or 3 days after placing an order, fault clearance times have
reduced and more and more services such as friends and families are being
introduced to meet the ever growing demands of the consumer. All of which are
used as benchmarks to see whether they are improving from one year to the next.
They bave undoubtedly benefited from ensuring all staff were given the right level
of education and training to ensure that they understood and grasped TQM and
139
----- - --------
they ensured procedures from day one were not bureaucratic. For GKN the
introduction of TQM has resulted in the reduction of scrap, customer concerns
both internal and external, improved administrative efficiency and improved
morale. No doubt the success of GKN has been increased with the interest of
their major dient(s) namely Ford and the necessity of obtaining QS 9000.
However, this must not distract from the knowledge and commitment that all the
employees have played in the implementation of TQM within GKN, the various
educational programmes, tools and techniques and numerous measures that have
been instigated to aid the transitional process.
Objective Five
Analyse the effect that TQM has had on the employees of such companies In
all three companies the implementation of TQM has encouraged an active
involvement by all its employees with the introduction of suggestion schemes,
workgroups, continuous improvement teams and the like. There is evidence in
the case study of GKN that it has increased morale. However, there is also
evidence in the survey's that the level of commitment shown by Managers is
significantly different between Miller and BT and GKN which has had, and
continues to have, a detrimental affect on employees morale and attitude towards
TQM in the companies more especially in Miller as the response to the survey
question "Senior Managers believe in TQM" demonstrates. The percentage of
respondents polled in the three companies 10 per cent agreed with this statement
in Miller, 89 per cent agreed in BT and 86 per cent agreed in GKN.
Objective Six
Develop an evaluation model of solutions and actions for organisations in their
pursuit of TQM . The research highlighted the problems that organisations,
especially the construction industry, can and have encountered in their pursuit and
implementation of TQM. The development of the model was for companies to
evaluate their position with regard to each of the barriers of TQM as highlighted in
the research to avoid unnecessary and costly pitfalls.
6.2 CONTRIBUTIONS OF THE RESEARCH
The research has made three main contributions. These are: the mapping out of
the activities with regard to TQM in three targeted companies; identification of the
focus and deficiencies in the expressed approach of TQM in the three companies;
and the development of an evaluation model which should encourage a more
140
pro active stance for the construction industry., In addition other developments of
significant contribution were achieved.
6.2.1 The New Focus for the Construction Industry
Previously very little information had been available on how the construction
industry was to move from a costly inefficient business. Although reports such as
those by Egan and Latham provided targets to strive for and Case Studies had
been conducted, an industry wide perspective of how they would achieve them
was not available. The research addressed this by providing an insight into the
activities of other established industries and how forums such as the Major
Contractors Group will provide the industry with the tools which in the longterm
will provide useful benchmarKs for contractors such as Miller.
6.2.2 Focus of the Construction Industries Approach to TQM
Having examined the focus of the three targeted companies approach to TQM
from analysis of questionnaires and structured interview, the research identified
key areas that the construction industry needs to address as part of an
implementation plan for TQM, in order to enhance competitive advantage. Of
particular significance here is the factor of measures, which was revealed to have
a secondary role to the construction industry.
6.2.3 The Evaluation of the Guru's and ISO 9000 Standards for TQM
The third major contribution of the research was the evaluation of the approaches
of the Guru's and of the evolving of ISO standards. Of importance here was that in
order to achieve a TQM philosophy and approach the tools and techniques
advocated by the Guru's could not be used in isolation and that the ISO standard
provided a strong and essential basis for TQM.
6.3 LIMITATIONS OF THE RESEARCH
Current practice of the TQM approach within three targeted industries, one of
which was construction, and hence companies has been characterised by a
structured formal approach. However, the need to observe confidentiality in
issues of current practice and the lack of interel>i and cooperation from some
companies has meant that academic knowledge of organisational processes and
the extrapolation of information that related to TQM within the construction
industry, has been limited.
141
A further limitation is that the period of research has been over an extended
period of time which has seen further developments in TQM techniques, such as
the Business Excellence Model, of which the benefrts and effects that this may
have on the implementation of TQM have not been fully explored. The three
targeted companies that were chosen to gather the evidence for this research,
have continued to progress in their pursuit of excellence and this is ongoing.
6.3.1 The role of the researcher
Care had to be given to potential bias as the researcher was also the researched.
As Cordaro and Ison (1963) have stated, consideration had to be given to the
possible effects of the experimenter expecting particular and the resultant
consequences. It was therefore important to be aware of any potential bias as the
"expectations" could distort the results and the researchers interpretation of data.
6.4 RECOMMENDATIONS FOR FURTHER RESEARCH
A number of issues have been identified from the research, for further
development which could yield useful results both for academic development and
practical applications to enhance the effectiveness of the construction industry.
A key issue that came out of the review of the Miller business environment
was the need for networking in a market which is increasingly becoming
global. This can be achieved through the establishment of forums such as
those of the Major Contractors Group. However, their use could be further
extended by inviting companies from other industries in order that the
construction industry can broaden their approach and style and reduce
inevitable leaming curves. There is currently little evidence that this option
has received attention in the construction industry. The potential of such
forums/alliances for enhancing the effectiveness and competitiveness of
the construction contractor therefore needs to be further explored.
There is further scope to explore the involvement that clients have with
contractors during the project phase. There is evidence to suggest that
some clients are asking contractors to selfcertify their work, but as to
what extent needs further exploration.
the identification; development and deployment of a construction industry
standard similar to that of QS 9000 could be employed by further
analysing the strategic reasons for dOing so in other industries such as
.. manufacturing. This can be achieved by employing the identified factors
that form the specific industry standard.
142
The research highlighted that contractors and clients alike are partnering
and the industry as a whole is choosing this preferred method of business
to improve service quality, delivery better deSigns, make construction safer
and meet earlier completion deadlines. This is recommended for further
research and development.
143
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147
148
APPENDIX A
BUSINESS AND PERFORMANCE REVIEW
ABSENTEISSM (%)
Total number of Ol!!] absent x lOO Purpose of measure: Indication of employee morale
Total number of hours worked
Total number ofhours absent:
Total of lost hours includes sick hours, doctorslhospital visits
etc.
Total number of hours worked:
Total number of scheduled hours x people in Team.
Overtime hours should be excluded.
NUMBER OF EMPWYEE SUGGESTIONS IMPLEMENTED
Purpose of measure: Indication of employee participation
level on eontinuous improvement activities.
Number of employee suggestions implemented: (written
onlv)
NUMBER OF CONTINUOUS IMPROVEMENT PROJECTS COMPLETED
NUMBER OF ISO 9001 NON-CONFORMITIES
(i)
(ii)
(iii)
(iv)
Internal Audit
Client Audit
BS Audit
In house
PLANT BREAKDOWN
(i)
(ii)
Own Plant breakdowns
Hired Plant breakdowns
SUPPLIER DELIVERY ON TIME
Purpose of measure: An indication of teamwork involvement
in continuous improvement activities.
Number of continuous improvement projects completed:
Number of sPeCific projects completed by teams
Purpose of measure: Indication of how well we are
managing our management system.
Number of ISO 9001 NC's: Number of NC's defined as in
left hand column.
Purpose of measure: Indication of the reliability of our
plantJhired plant.
Number of plant breakdowns: Number of plant breakdowns
of more than I hour duration.
Total number of orders received on time from suppliers x 100 Purpose of measure: Indication of reliability of our suppliers.
Total number of orders Number of orders received on time: Total number of orders
received from supplier on time.
Total number of orders: Total number of orders scheduled to
be delivered.
VALUE ADDED CONTRIBUTION INDEX (pRODUClTIVI1Y)
l
Re_v_e_nu_e_-_'",SU",P",!D::
Ii
Ooler",&=E;.:xt",ernaI:::...-_Se_M_ _____ l_Purpo_. se Of. measure: Indication of internal productivity
. cost .
149
I
APPENDIX A
BUSINESS AND PERFORMANCE REVIEW
% OF INVOICES NOT PAID ON TIME
Number of invoices not Jl!!id by due date
Total number of invoices
SUB-CONTRACTOR COMPLETION
NUMBER OF PUBLIC COMPLAINTS
ENERGY CONSUPMPTION RATE
Cost of energy x 100
Revenue
Purpose of measure: Indication of our efficiency in paying
suppliers.
Number of invoices not ooid on time: Total number not paid
on time.
Number of invoices: Total ninnber of invoices for the same
period.
Purpose of measure: Indication of the reliability of our sub-
contmctors.
Sub-contmctor completion: Number of sub-contmctor jobs
that failed to be completed by the agreed prolmlIlUlle date.
Purpose of measure: Indicate public perception of our
activities.
Number of public complaints: Number of complaints
received.
Purpose of measure: Indication of bow effiCiently we can
manage cost of energy consumption.
Cost ofener,gy: Total amount soent on electricity, gas, oil.
NUMBER OF ENVIRONMENTAL REPORTABLE INCIDENTS
INTRANET USAGE
150
Purpose of measure: An indication of bow environmentally
safe working areas are obtained.
Number of environmental reportable incidents: Number of
incidents that bave to be reported to local authorities.
PurpOse of measure: An indication of the usage of the
inuanet and subject area
, .
APPENDIX B: ANALYSIS OF CARS AND OBSERVATIONS RAISED DURING AUDITS WITHIN MILLER
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APPENDIX D: ANALYSIS OF SCRAP VALUE WITIllN GKN SINTER METALS LID
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ITREND & TARGET I
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o JAN FEe MAR APR MAY JUN JUl AUG SEP OCT NOV DEC
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TARGET TREND
REF PERIOD NOVI ffloer97
I SOURCE OF SCRAP I
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__________ __ _______ _ _ ._
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